WallStSmart

Emerson Electric Company (EMR)vsTextron Inc (TXT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Emerson Electric Company generates 23% more annual revenue ($18.19B vs $14.80B). EMR leads profitability with a 12.7% profit margin vs 6.2%. TXT appears more attractively valued with a PEG of 1.12. TXT earns a higher WallStSmart Score of 69/100 (B-).

EMR

Buy

51

out of 100

Grade: C-

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

TXT

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 5.5Value: 5.3Quality: 6.5
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for EMR.

TXTSignificantly Overvalued (-17.6%)

Margin of Safety

-17.6%

Fair Value

$82.71

Current Price

$89.78

$7.07 premium

UndervaluedFair: $82.71Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EMR2 strengths · Avg: 8.5/10
Market CapQuality
$78.93B9/10

Large-cap with strong market position

Operating MarginProfitability
24.6%8/10

Strong operational efficiency at 24.6%

TXT4 strengths · Avg: 8.5/10
EPS GrowthGrowth
74.4%10/10

Earnings expanding 74.4% YoY

P/E RatioValuation
17.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.6%8/10

15.6% revenue growth

Areas to Watch

EMR4 concerns · Avg: 4.0/10
PEG RatioValuation
1.754/10

Expensive relative to growth rate

P/E RatioValuation
34.3x4/10

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

TXT1 concerns · Avg: 3.0/10
Profit MarginProfitability
6.2%3/10

6.2% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : EMR

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

Bull Case : TXT

The strongest argument for TXT centers on EPS Growth, P/E Ratio, Price/Book. Revenue growth of 15.6% demonstrates continued momentum. PEG of 1.12 suggests the stock is reasonably priced for its growth.

Bear Case : EMR

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

Bear Case : TXT

The primary concerns for TXT are Profit Margin.

Key Dynamics to Monitor

EMR profiles as a value stock while TXT is a growth play — different risk/reward profiles.

EMR carries more volatility with a beta of 1.28 — expect wider price swings.

TXT is growing revenue faster at 15.6% — sustainability is the question.

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

Bottom Line

TXT scores higher overall (69/100 vs 51/100) and 15.6% revenue growth. Both earn "Strong 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.

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.

Textron Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Textron Inc. is an American industrial conglomerate based in Providence, Rhode Island. Textron's subsidiaries include Arctic Cat, Bell Textron, Textron Aviation (which itself includes the Beechcraft, Hawker, and Cessna brands), and Lycoming Engines.

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