WallStSmart

Eaton Corporation PLC (ETN)vsLATAM Airlines Group S.A. (LTM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eaton Corporation PLC generates 92% more annual revenue ($27.45B vs $14.27B). ETN leads profitability with a 14.9% profit margin vs 10.2%. LTM appears more attractively valued with a PEG of 2.58. LTM earns a higher WallStSmart Score of 63/100 (C+).

ETN

Buy

59

out of 100

Grade: C

Growth: 6.7Profit: 7.5Value: 3.7Quality: 5.0
Piotroski: 4/9

LTM

Buy

63

out of 100

Grade: C+

Growth: 8.7Profit: 8.0Value: 4.7Quality: 4.3
Piotroski: 5/9Altman Z: 1.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ETN.

LTMSignificantly Overvalued (-49.1%)

Margin of Safety

-49.1%

Fair Value

$41.15

Current Price

$50.00

$8.85 premium

UndervaluedFair: $41.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ETN4 strengths · Avg: 8.5/10
Market CapQuality
$164.47B9/10

Large-cap with strong market position

Return on EquityProfitability
21.5%9/10

Every $100 of equity generates 22 in profit

Operating MarginProfitability
20.0%8/10

Strong operational efficiency at 20.0%

Free Cash FlowQuality
$1.79B8/10

Generating 1.8B in free cash flow

LTM4 strengths · Avg: 9.5/10
P/E RatioValuation
10.1x10/10

Attractively priced relative to earnings

Return on EquityProfitability
142.9%10/10

Every $100 of equity generates 143 in profit

EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Revenue GrowthGrowth
16.1%8/10

16.1% revenue growth

Areas to Watch

ETN3 concerns · Avg: 2.7/10
Price/BookValuation
8.5x4/10

Trading at 8.5x book value

PEG RatioValuation
3.142/10

Expensive relative to growth rate

P/E RatioValuation
40.5x2/10

Premium valuation, high expectations priced in

LTM3 concerns · Avg: 2.7/10
Price/BookValuation
12.5x4/10

Trading at 12.5x book value

PEG RatioValuation
2.582/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.392/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : ETN

The strongest argument for ETN centers on Market Cap, Return on Equity, Operating Margin. Revenue growth of 13.1% demonstrates continued momentum.

Bull Case : LTM

The strongest argument for LTM centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 16.1% demonstrates continued momentum.

Bear Case : ETN

The primary concerns for ETN are Price/Book, PEG Ratio, P/E Ratio. A P/E of 40.5x leaves little room for execution misses.

Bear Case : LTM

The primary concerns for LTM are Price/Book, PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

ETN profiles as a value stock while LTM is a growth play — different risk/reward profiles.

ETN carries more volatility with a beta of 1.16 — expect wider price swings.

LTM is growing revenue faster at 16.1% — sustainability is the question.

ETN generates stronger free cash flow (1.8B), providing more financial flexibility.

Bottom Line

LTM scores higher overall (63/100 vs 59/100) and 16.1% revenue growth. 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.

Eaton Corporation PLC

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Eaton Corporation plc is an American Irish-domiciled multinational power management company with 2020 sales of 17.86 billion USD, founded in the United States with corporate headquarters in Dublin, Ireland, and operational headquarters in Beachwood, Ohio.

LATAM Airlines Group S.A.

INDUSTRIALS · AIRLINES · USA

LATAM Airlines Group SA, provides passenger and cargo air transport services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, Asia Pacific and the rest of Latin America.

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