WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Emerson Electric Company generates 380% more annual revenue ($18.32B vs $3.81B). AOS leads profitability with a 13.8% profit margin vs 13.4%. AOS appears more attractively valued with a PEG of 1.55. EMR earns a higher WallStSmart Score of 59/100 (C).

AOS

Buy

53

out of 100

Grade: C-

Growth: 2.7Profit: 8.0Value: 5.3Quality: 8.0
Piotroski: 6/9Altman Z: 4.78

EMR

Buy

59

out of 100

Grade: C

Growth: 6.0Profit: 6.5Value: 4.3Quality: 5.5
Piotroski: 5/9Altman Z: 2.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AOSFair Value (-2.8%)

Margin of Safety

-2.8%

Fair Value

$78.07

Current Price

$57.20

$20.87 premium

UndervaluedFair: $78.07Overvalued

Intrinsic value data unavailable for EMR.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AOS3 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
4.7810/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
28.1%9/10

Every $100 of equity generates 28 in profit

P/E RatioValuation
15.8x8/10

Attractively priced relative to earnings

EMR3 strengths · Avg: 8.3/10
Market CapQuality
$79.55B9/10

Large-cap with strong market position

Operating MarginProfitability
24.2%8/10

Strong operational efficiency at 24.2%

EPS GrowthGrowth
27.9%8/10

Earnings expanding 27.9% YoY

Areas to Watch

AOS3 concerns · Avg: 2.7/10
PEG RatioValuation
1.554/10

Expensive relative to growth rate

Revenue GrowthGrowth
-1.9%2/10

Revenue declined 1.9%

EPS GrowthGrowth
-10.5%2/10

Earnings declined 10.5%

EMR3 concerns · Avg: 4.0/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

P/E RatioValuation
32.9x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Comparative Analysis Report

WallStSmart Research

Bull Case : AOS

The strongest argument for AOS centers on Altman Z-Score, Return on Equity, P/E Ratio.

Bull Case : EMR

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

Bear Case : AOS

The primary concerns for AOS are PEG Ratio, Revenue Growth, EPS Growth.

Bear Case : EMR

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

Key Dynamics to Monitor

AOS profiles as a declining stock while EMR is a value play — different risk/reward profiles.

EMR carries more volatility with a beta of 1.25 — expect wider price swings.

EMR is growing revenue faster at 2.9% — sustainability is the question.

EMR generates stronger free cash flow (694M), providing more financial flexibility.

Bottom Line

EMR scores higher overall (59/100 vs 53/100). 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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