WallStSmart

Smith AO Corporation (AOS)vsEmerson Electric Company (EMR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Emerson Electric Company generates 375% more annual revenue ($18.19B vs $3.83B). AOS leads profitability with a 14.3% profit margin vs 12.7%. AOS appears more attractively valued with a PEG of 1.36. AOS earns a higher WallStSmart Score of 63/100 (C+).

AOS

Buy

63

out of 100

Grade: C+

Growth: 5.7Profit: 8.0Value: 10.0Quality: 6.0

EMR

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 6.5Value: 7.3Quality: 5.3
Piotroski: 5/9Altman Z: 2.56
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AOSUndervalued (+44.2%)

Margin of Safety

+44.2%

Fair Value

$143.84

Current Price

$66.90

$76.94 discount

UndervaluedFair: $143.84Overvalued
EMRSignificantly Overvalued (-159.6%)

Margin of Safety

-159.6%

Fair Value

$59.58

Current Price

$130.86

$71.28 premium

UndervaluedFair: $59.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AOS3 strengths · Avg: 8.7/10
Return on EquityProfitability
29.2%9/10

Every $100 of equity generates 29 in profit

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

P/E RatioValuation
17.4x8/10

Attractively priced relative to earnings

EMR2 strengths · Avg: 8.5/10
Market CapQuality
$73.18B9/10

Large-cap with strong market position

Operating MarginProfitability
24.6%8/10

Strong operational efficiency at 24.6%

Areas to Watch

AOS1 concerns · Avg: 4.0/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

EMR4 concerns · Avg: 4.0/10
PEG RatioValuation
1.644/10

Expensive relative to growth rate

P/E RatioValuation
32.0x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

EPS GrowthGrowth
4.9%4/10

4.9% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : AOS

The strongest argument for AOS centers on Return on Equity, Debt/Equity, P/E Ratio. PEG of 1.36 suggests the stock is reasonably priced for its growth.

Bull Case : EMR

The strongest argument for EMR centers on Market Cap, Operating Margin.

Bear Case : AOS

The primary concerns for AOS are Revenue Growth.

Bear Case : EMR

The primary concerns for EMR are PEG Ratio, P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

AOS carries more volatility with a beta of 1.30 — expect wider price swings.

EMR is growing revenue faster at 4.1% — sustainability is the question.

EMR generates stronger free cash flow (602M), providing more financial flexibility.

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AOS scores higher overall (63/100 vs 51/100). 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.

Smith AO Corporation

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

A. O. Smith Corporation is an American manufacturer of both residential and commercial water heaters and boilers and the largest manufacturer and marketer of water heaters in North America. It also supplies water treatment products in the Asian market.

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Emerson Electric Company

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Emerson Electric Co. is an American multinational corporation headquartered in Ferguson, Missouri. The Fortune 500 company manufactures products and provides engineering services for a wide range of industrial, commercial, and consumer markets.

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