WallStSmart

Shengfeng Development Limited Class A Ordinary Shares (SFWL)vsZTO Express (Cayman) Inc (ZTO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ZTO Express (Cayman) Inc generates 8985% more annual revenue ($49.10B vs $540.46M). ZTO leads profitability with a 18.5% profit margin vs 2.2%. SFWL trades at a lower P/E of 6.2x. ZTO earns a higher WallStSmart Score of 76/100 (B+).

SFWL

Hold

47

out of 100

Grade: D+

Growth: 8.0Profit: 5.0Value: 8.3Quality: 6.5
Piotroski: 3/9Altman Z: 2.51

ZTO

Strong Buy

76

out of 100

Grade: B+

Growth: 6.7Profit: 7.0Value: 10.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SFWLUndervalued (+81.2%)

Margin of Safety

+81.2%

Fair Value

$4.63

Current Price

$0.88

$3.75 discount

UndervaluedFair: $4.63Overvalued
ZTOUndervalued (+67.2%)

Margin of Safety

+67.2%

Fair Value

$75.82

Current Price

$24.32

$51.50 discount

UndervaluedFair: $75.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SFWL3 strengths · Avg: 9.3/10
P/E RatioValuation
6.2x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.0%8/10

16.0% revenue growth

ZTO5 strengths · Avg: 8.2/10
Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.0%8/10

Strong operational efficiency at 22.0%

Free Cash FlowQuality
$7.74B8/10

Generating 7.7B in free cash flow

Areas to Watch

SFWL4 concerns · Avg: 3.0/10
Market CapQuality
$73.56M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.2%3/10

2.2% margin — thin

Operating MarginProfitability
3.0%3/10

Operating margin of 3.0%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

ZTO0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : SFWL

The strongest argument for SFWL centers on P/E Ratio, Price/Book, Revenue Growth. Revenue growth of 16.0% demonstrates continued momentum.

Bull Case : ZTO

The strongest argument for ZTO centers on Debt/Equity, P/E Ratio, Price/Book. Profitability is solid with margins at 18.5% and operating margin at 22.0%. Revenue growth of 12.3% demonstrates continued momentum.

Bear Case : SFWL

The primary concerns for SFWL are Market Cap, Profit Margin, Operating Margin. Thin 2.2% margins leave little buffer for downturns.

Bear Case : ZTO

No major red flags identified for ZTO, but monitor valuation.

Key Dynamics to Monitor

SFWL profiles as a growth stock while ZTO is a mature play — different risk/reward profiles.

ZTO carries more volatility with a beta of -0.15 — expect wider price swings.

SFWL is growing revenue faster at 16.0% — sustainability is the question.

ZTO generates stronger free cash flow (7.7B), providing more financial flexibility.

Bottom Line

ZTO scores higher overall (76/100 vs 47/100), backed by strong 18.5% margins and 12.3% revenue growth. SFWL offers better value entry with a 81.2% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Shengfeng Development Limited Class A Ordinary Shares

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · USA

Shengfeng Development Limited, provides contract logistics services in the People's Republic of China. The company is headquartered in Fuzhou, the People's Republic of China.

ZTO Express (Cayman) Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · China

ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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