WallStSmart

Allison Transmission Holdings Inc (ALSN)vsStandard Motor Products Inc (SMP)

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Smart Verdict

WallStSmart Research — data-driven comparison

Allison Transmission Holdings Inc generates 184% more annual revenue ($5.24B vs $1.85B). ALSN leads profitability with a 11.1% profit margin vs 3.8%. SMP appears more attractively valued with a PEG of 0.53. ALSN earns a higher WallStSmart Score of 83/100 (A-).

ALSN

Exceptional Buy

83

out of 100

Grade: A-

Growth: 8.0Profit: 8.0Value: 5.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.59

SMP

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 5.5Value: 7.3Quality: 6.5
Piotroski: 4/9Altman Z: 2.21
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALSNSignificantly Overvalued (-22.0%)

Margin of Safety

-22.0%

Fair Value

$95.45

Current Price

$125.65

$30.20 premium

UndervaluedFair: $95.45Overvalued
SMPOvervalued (-13.7%)

Margin of Safety

-13.7%

Fair Value

$39.39

Current Price

$43.95

$4.56 premium

UndervaluedFair: $39.39Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALSN5 strengths · Avg: 8.6/10
Revenue GrowthGrowth
121.4%10/10

Revenue surging 121.4% year-over-year

Return on EquityProfitability
28.5%9/10

Every $100 of equity generates 29 in profit

PEG RatioValuation
0.568/10

Growing faster than its price suggests

Operating MarginProfitability
20.1%8/10

Strong operational efficiency at 20.1%

EPS GrowthGrowth
41.1%8/10

Earnings expanding 41.1% YoY

SMP3 strengths · Avg: 9.3/10
P/E RatioValuation
11.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

PEG RatioValuation
0.538/10

Growing faster than its price suggests

Areas to Watch

ALSN2 concerns · Avg: 3.5/10
Altman Z-ScoreHealth
1.594/10

Distress zone — elevated risk

Debt/EquityHealth
1.933/10

Elevated debt levels

SMP3 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.8%4/10

1.8% revenue growth

Market CapQuality
$993.32M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : ALSN

The strongest argument for ALSN centers on Revenue Growth, Return on Equity, PEG Ratio. Revenue growth of 121.4% demonstrates continued momentum. PEG of 0.56 suggests the stock is reasonably priced for its growth.

Bull Case : SMP

The strongest argument for SMP centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.53 suggests the stock is reasonably priced for its growth.

Bear Case : ALSN

The primary concerns for ALSN are Altman Z-Score, Debt/Equity. Debt-to-equity of 1.93 is elevated, increasing financial risk.

Bear Case : SMP

The primary concerns for SMP are Revenue Growth, Market Cap, Profit Margin. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

ALSN profiles as a growth stock while SMP is a value play — different risk/reward profiles.

ALSN carries more volatility with a beta of 1.06 — expect wider price swings.

ALSN is growing revenue faster at 121.4% — sustainability is the question.

ALSN generates stronger free cash flow (278M), providing more financial flexibility.

Bottom Line

ALSN scores higher overall (83/100 vs 63/100) and 121.4% revenue growth. Both earn "Exceptional 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.

Allison Transmission Holdings Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

Allison Transmission Holdings, Inc. designs, manufactures and sells fully automatic commercial and defense transmissions for medium and heavy duty commercial vehicles, and medium and heavy duty US defense vehicles globally. The company is headquartered in Indianapolis, Indiana.

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Standard Motor Products Inc

CONSUMER CYCLICAL · AUTO PARTS · USA

Standard Motor Products, Inc. manufactures and distributes motor vehicle replacement parts to the automotive aftermarket industry. The company is headquartered in Long Island City, New York.

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