WallStSmart

Applied Industrial Technologies (AIT)vsNow Inc (DNOW)

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Smart Verdict

WallStSmart Research — data-driven comparison

Applied Industrial Technologies generates 22% more annual revenue ($4.97B vs $4.08B). AIT leads profitability with a 8.3% profit margin vs -4.6%. AIT earns a higher WallStSmart Score of 57/100 (C).

AIT

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 7.0Value: 3.7Quality: 9.0
Piotroski: 6/9Altman Z: 4.91

DNOW

Buy

56

out of 100

Grade: C

Growth: 8.7Profit: 3.0Value: 5.3Quality: 6.5
Piotroski: 2/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AIT.

DNOWUndervalued (+8.6%)

Margin of Safety

+8.6%

Fair Value

$18.13

Current Price

$16.50

$1.63 discount

UndervaluedFair: $18.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AIT3 strengths · Avg: 9.3/10
Altman Z-ScoreHealth
4.9110/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
22.3%9/10

Every $100 of equity generates 22 in profit

Debt/EquityHealth
0.269/10

Conservative balance sheet, low leverage

DNOW3 strengths · Avg: 10.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
108.1%10/10

Revenue surging 108.1% year-over-year

EPS GrowthGrowth
90.5%10/10

Earnings expanding 90.5% YoY

Areas to Watch

AIT2 concerns · Avg: 3.0/10
P/E RatioValuation
30.2x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
2.782/10

Expensive relative to growth rate

DNOW4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Operating MarginProfitability
1.1%3/10

Operating margin of 1.1%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-6.6%2/10

ROE of -6.6% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : AIT

The strongest argument for AIT centers on Altman Z-Score, Return on Equity, Debt/Equity. Revenue growth of 10.4% demonstrates continued momentum.

Bull Case : DNOW

The strongest argument for DNOW centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 108.1% demonstrates continued momentum.

Bear Case : AIT

The primary concerns for AIT are P/E Ratio, PEG Ratio.

Bear Case : DNOW

The primary concerns for DNOW are Altman Z-Score, Operating Margin, Piotroski F-Score.

Key Dynamics to Monitor

AIT profiles as a value stock while DNOW is a hypergrowth play — different risk/reward profiles.

DNOW carries more volatility with a beta of 0.89 — expect wider price swings.

DNOW is growing revenue faster at 108.1% — sustainability is the question.

AIT generates stronger free cash flow (160M), providing more financial flexibility.

Bottom Line

AIT scores higher overall (57/100 vs 56/100) and 10.4% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Applied Industrial Technologies

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Applied Industrial Technologies, Inc. distributes industrial products in North America, Australia, New Zealand, and Singapore. The company is headquartered in Cleveland, Ohio.

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Now Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

NOW Inc. distributes downstream power and industrial products for oil refining, chemical processing, LNG terminals, power generation services, and industrial manufacturing operations in the United States, Canada, and internationally. The company is headquartered in Houston, Texas.

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