WallStSmart

Stepstone Group Inc (STEP)vsWells Fargo & Company (WFC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Wells Fargo & Company generates 3970% more annual revenue ($81.14B vs $1.99B). WFC leads profitability with a 26.7% profit margin vs -26.9%. WFC earns a higher WallStSmart Score of 74/100 (B).

STEP

Avoid

33

out of 100

Grade: F

Growth: 5.7Profit: 2.0Value: 5.0Quality: 5.5
Piotroski: 4/9Altman Z: -0.05

WFC

Strong Buy

74

out of 100

Grade: B

Growth: 7.3Profit: 7.5Value: 7.0Quality: 3.0
Piotroski: 4/9Altman Z: -0.38

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

STEP2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
55.8%10/10

Revenue surging 55.8% year-over-year

Debt/EquityHealth
-3.1610/10

Conservative balance sheet, low leverage

WFC6 strengths · Avg: 8.8/10
Market CapQuality
$236.15B10/10

Mega-cap, among the largest globally

P/E RatioValuation
11.9x10/10

Attractively priced relative to earnings

Profit MarginProfitability
26.7%9/10

Keeps 27 of every $100 in revenue as profit

Price/BookValuation
1.5x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.4%8/10

Strong operational efficiency at 29.4%

Free Cash FlowQuality
$9.14B8/10

Generating 9.1B in free cash flow

Areas to Watch

STEP4 concerns · Avg: 2.0/10
Return on EquityProfitability
-55.9%2/10

ROE of -55.9% — below average capital efficiency

EPS GrowthGrowth
-38.5%2/10

Earnings declined 38.5%

Free Cash FlowQuality
$-23.96M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
-0.052/10

Distress zone — elevated risk

WFC2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
-0.382/10

Distress zone — elevated risk

Debt/EquityHealth
2.531/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : STEP

The strongest argument for STEP centers on Revenue Growth, Debt/Equity. Revenue growth of 55.8% demonstrates continued momentum.

Bull Case : WFC

The strongest argument for WFC centers on Market Cap, P/E Ratio, Profit Margin. Profitability is solid with margins at 26.7% and operating margin at 29.4%. PEG of 1.37 suggests the stock is reasonably priced for its growth.

Bear Case : STEP

The primary concerns for STEP are Return on Equity, EPS Growth, Free Cash Flow.

Bear Case : WFC

The primary concerns for WFC are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.53 is elevated, increasing financial risk.

Key Dynamics to Monitor

STEP profiles as a hypergrowth stock while WFC is a mature play — different risk/reward profiles.

STEP carries more volatility with a beta of 1.28 — expect wider price swings.

STEP is growing revenue faster at 55.8% — sustainability is the question.

WFC generates stronger free cash flow (9.1B), providing more financial flexibility.

Bottom Line

WFC scores higher overall (74/100 vs 33/100), backed by strong 26.7% margins. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Stepstone Group Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Stepstone Group Inc. (STEP) is a leading global private markets investment firm, renowned for its tailored investment solutions catering to institutional investors. The firm specializes in private equity, real estate, infrastructure, and private debt, utilizing an extensive network and deep industry insights to uncover premium investment opportunities. With a commitment to optimizing client portfolios through strategic asset allocation and rigorous due diligence, Stepstone is supported by a team of experienced professionals and innovative technology, positioning itself to effectively navigate the complexities of private markets and generate sustainable long-term value for its clients.

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Wells Fargo & Company

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and overseas.

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