Eaton Corporation PLC (ETN)vsTrex Company Inc (TREX)
ETN
Eaton Corporation PLC
$433.01
+5.41%
INDUSTRIALS · Cap: $168.00B
TREX
Trex Company Inc
$39.63
-3.37%
INDUSTRIALS · Cap: $4.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Eaton Corporation PLC generates 2237% more annual revenue ($27.45B vs $1.17B). TREX leads profitability with a 16.2% profit margin vs 14.9%. TREX appears more attractively valued with a PEG of 1.00. ETN earns a higher WallStSmart Score of 59/100 (C).
ETN
Buy59
out of 100
Grade: C
TREX
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ETN.
Margin of Safety
+56.5%
Fair Value
$101.25
Current Price
$39.63
$61.62 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Strong operational efficiency at 20.0%
Generating 1.8B in free cash flow
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Areas to Watch
Trading at 8.6x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Operating margin of 2.2%
Weak financial health signals
Revenue declined 3.9%
Earnings declined 89.4%
Comparative Analysis Report
WallStSmart ResearchBull 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 : TREX
The strongest argument for TREX centers on Altman Z-Score, PEG Ratio. Profitability is solid with margins at 16.2% and operating margin at 2.2%. PEG of 1.00 suggests the stock is reasonably priced for its growth.
Bear Case : ETN
The primary concerns for ETN are Price/Book, PEG Ratio, P/E Ratio. A P/E of 41.5x leaves little room for execution misses.
Bear Case : TREX
The primary concerns for TREX are Operating Margin, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
ETN profiles as a value stock while TREX is a declining play — different risk/reward profiles.
TREX carries more volatility with a beta of 1.61 — expect wider price swings.
ETN is growing revenue faster at 13.1% — sustainability is the question.
ETN generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
ETN scores higher overall (59/100 vs 51/100) and 13.1% revenue growth. TREX offers better value entry with a 56.5% 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.
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.
Trex Company Inc
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Trex Company, Inc. manufactures and distributes wood-plastic composite products and related accessories primarily for residential deck and railing applications in the United States. The company is headquartered in Winchester, Virginia.
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