WallStSmart

Emerson Electric Company (EMR)vsGXO Logistics Inc (GXO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Emerson Electric Company generates 38% more annual revenue ($18.19B vs $13.18B). EMR leads profitability with a 12.7% profit margin vs 0.2%. GXO appears more attractively valued with a PEG of 1.56. EMR earns a higher WallStSmart Score of 51/100 (C-).

EMR

Buy

51

out of 100

Grade: C-

Growth: 4.7Profit: 6.5Value: 4.3Quality: 5.3
Piotroski: 5/9Altman Z: 2.57

GXO

Hold

47

out of 100

Grade: D+

Growth: 5.3Profit: 4.0Value: 5.3Quality: 3.3
Piotroski: 1/9Altman Z: 1.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for EMR.

GXOUndervalued (+77.4%)

Margin of Safety

+77.4%

Fair Value

$280.63

Current Price

$49.85

$230.78 discount

UndervaluedFair: $280.63Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EMR2 strengths · Avg: 8.5/10
Market CapQuality
$76.13B9/10

Large-cap with strong market position

Operating MarginProfitability
24.6%8/10

Strong operational efficiency at 24.6%

GXO1 strengths · Avg: 8.0/10
Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

EMR4 concerns · Avg: 4.0/10
PEG RatioValuation
1.764/10

Expensive relative to growth rate

P/E RatioValuation
33.7x4/10

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

GXO4 concerns · Avg: 3.3/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

Return on EquityProfitability
1.2%3/10

ROE of 1.2% — below average capital efficiency

Profit MarginProfitability
0.2%3/10

0.2% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : EMR

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

Bull Case : GXO

The strongest argument for GXO centers on Price/Book.

Bear Case : EMR

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

Bear Case : GXO

The primary concerns for GXO are PEG Ratio, Return on Equity, Profit Margin. A P/E of 200.8x leaves little room for execution misses. Thin 0.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

GXO carries more volatility with a beta of 1.68 — expect wider price swings.

GXO is growing revenue faster at 7.9% — 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

EMR scores higher overall (51/100 vs 47/100). GXO offers better value entry with a 77.4% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

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.

GXO Logistics Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · USA

GXO Logistics Inc (GXO) stands as a premier provider of contract logistics services, offering comprehensive supply chain management and logistics solutions tailored to various industries, including e-commerce, retail, and consumer goods. Leveraging an expansive global network and cutting-edge technologies, GXO enhances operational efficiency and scalability for clients, all while prioritizing sustainability in its practices. With a growing demand for advanced warehousing and fulfillment solutions, the company is strategically positioned to navigate market complexities, driven by a seasoned management team and robust partnerships that foster consistent long-term growth and shareholder value.

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