WallStSmart

The Cheesecake Factory (CAKE)vsSea Ltd (SE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sea Ltd generates 562% more annual revenue ($25.19B vs $3.80B). SE leads profitability with a 6.4% profit margin vs 4.3%. SE appears more attractively valued with a PEG of 1.24. CAKE earns a higher WallStSmart Score of 62/100 (C+).

CAKE

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 4.7Quality: 4.0
Piotroski: 4/9Altman Z: 1.91

SE

Buy

58

out of 100

Grade: C

Growth: 8.0Profit: 5.5Value: 6.7Quality: 7.5
Piotroski: 6/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CAKEFair Value (-2.6%)

Margin of Safety

-2.6%

Fair Value

$60.01

Current Price

$66.13

$6.12 premium

UndervaluedFair: $60.01Overvalued
SEUndervalued (+52.8%)

Margin of Safety

+52.8%

Fair Value

$242.66

Current Price

$86.56

$156.10 discount

UndervaluedFair: $242.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAKE2 strengths · Avg: 10.0/10
Return on EquityProfitability
35.9%10/10

Every $100 of equity generates 36 in profit

EPS GrowthGrowth
52.2%10/10

Earnings expanding 52.2% YoY

SE3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
46.6%10/10

Revenue surging 46.6% year-over-year

Market CapQuality
$53.08B9/10

Large-cap with strong market position

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Areas to Watch

CAKE4 concerns · Avg: 3.0/10
PEG RatioValuation
1.554/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.914/10

Grey zone — moderate risk

Profit MarginProfitability
4.3%3/10

4.3% margin — thin

Debt/EquityHealth
4.661/10

Elevated debt levels

SE4 concerns · Avg: 3.8/10
P/E RatioValuation
34.1x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
3.1%4/10

3.1% earnings growth

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Profit MarginProfitability
6.4%3/10

6.4% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : CAKE

The strongest argument for CAKE centers on Return on Equity, EPS Growth.

Bull Case : SE

The strongest argument for SE centers on Revenue Growth, Market Cap, Debt/Equity. Revenue growth of 46.6% demonstrates continued momentum. PEG of 1.24 suggests the stock is reasonably priced for its growth.

Bear Case : CAKE

The primary concerns for CAKE are PEG Ratio, Altman Z-Score, Profit Margin. Debt-to-equity of 4.66 is elevated, increasing financial risk. Thin 4.3% margins leave little buffer for downturns.

Bear Case : SE

The primary concerns for SE are P/E Ratio, EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

CAKE profiles as a value stock while SE is a hypergrowth play — different risk/reward profiles.

SE carries more volatility with a beta of 1.57 — expect wider price swings.

SE is growing revenue faster at 46.6% — sustainability is the question.

Monitor RESTAURANTS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CAKE scores higher overall (62/100 vs 58/100). SE offers better value entry with a 52.8% margin of safety. 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.

The Cheesecake Factory

CONSUMER CYCLICAL · RESTAURANTS · USA

Cheesecake Factory Incorporated operates restaurants. The company is headquartered in Calabasas, California.

Sea Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.

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