WallStSmart

Eaton Corporation PLC (ETN)vsZTO Express (Cayman) Inc (ZTO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

ZTO Express (Cayman) Inc generates 79% more annual revenue ($49.10B vs $27.45B). ZTO leads profitability with a 18.5% profit margin vs 14.9%. ZTO appears more attractively valued with a PEG of 1.29. ZTO earns a higher WallStSmart Score of 69/100 (B-).

ETN

Buy

59

out of 100

Grade: C

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

ZTO

Strong Buy

69

out of 100

Grade: B-

Growth: 6.7Profit: 7.0Value: 8.0Quality: 7.0
Piotroski: 4/9Altman Z: 2.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ETN.

ZTOUndervalued (+81.2%)

Margin of Safety

+81.2%

Fair Value

$132.23

Current Price

$25.37

$106.86 discount

UndervaluedFair: $132.23Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ETN4 strengths · Avg: 8.5/10
Market CapQuality
$168.00B9/10

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

ZTO5 strengths · Avg: 8.6/10
Free Cash FlowQuality
$11.97B10/10

Generating 12.0B in free cash flow

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

P/E RatioValuation
15.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.3%8/10

Strong operational efficiency at 22.3%

Areas to Watch

ETN3 concerns · Avg: 2.7/10
Price/BookValuation
8.6x4/10

Trading at 8.6x book value

PEG RatioValuation
3.042/10

Expensive relative to growth rate

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

ZTO0 concerns · Avg: 0/10

No major concerns identified

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 : ZTO

The strongest argument for ZTO centers on Free Cash Flow, Debt/Equity, P/E Ratio. Profitability is solid with margins at 18.5% and operating margin at 22.3%. Revenue growth of 12.3% demonstrates continued momentum.

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 : ZTO

No major red flags identified for ZTO, but monitor valuation.

Key Dynamics to Monitor

ETN profiles as a value stock while ZTO is a mature play — different risk/reward profiles.

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

ETN is growing revenue faster at 13.1% — sustainability is the question.

ZTO generates stronger free cash flow (12.0B), providing more financial flexibility.

Bottom Line

ZTO scores higher overall (69/100 vs 59/100), backed by strong 18.5% margins and 12.3% 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.

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.

ZTO Express (Cayman) Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · China

ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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