WallStSmart

Lowe's Companies Inc (LOW)vsMohawk Industries Inc (MHK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lowe's Companies Inc generates 705% more annual revenue ($88.43B vs $10.99B). LOW leads profitability with a 7.5% profit margin vs 3.8%. MHK appears more attractively valued with a PEG of 0.64. MHK earns a higher WallStSmart Score of 69/100 (B-).

LOW

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 5.5Value: 5.3Quality: 6.0
Piotroski: 3/9Altman Z: 1.88

MHK

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 5.0Value: 7.3Quality: 7.5
Piotroski: 3/9Altman Z: 2.90
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LOWSignificantly Overvalued (-50.6%)

Margin of Safety

-50.6%

Fair Value

$139.97

Current Price

$210.74

$70.77 premium

UndervaluedFair: $139.97Overvalued
MHKUndervalued (+3.5%)

Margin of Safety

+3.5%

Fair Value

$139.84

Current Price

$102.86

$36.98 discount

UndervaluedFair: $139.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LOW4 strengths · Avg: 8.8/10
Debt/EquityHealth
-4.5910/10

Conservative balance sheet, low leverage

Market CapQuality
$115.86B9/10

Large-cap with strong market position

P/E RatioValuation
17.5x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.83B8/10

Generating 2.8B in free cash flow

MHK5 strengths · Avg: 9.2/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

EPS GrowthGrowth
65.2%10/10

Earnings expanding 65.2% YoY

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.648/10

Growing faster than its price suggests

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

Areas to Watch

LOW4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.884/10

Grey zone — moderate risk

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
7.5%3/10

7.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

MHK3 concerns · Avg: 3.0/10
Return on EquityProfitability
5.0%3/10

ROE of 5.0% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : LOW

The strongest argument for LOW centers on Debt/Equity, Market Cap, P/E Ratio. Revenue growth of 10.3% demonstrates continued momentum. PEG of 1.36 suggests the stock is reasonably priced for its growth.

Bull Case : MHK

The strongest argument for MHK centers on Price/Book, EPS Growth, Debt/Equity. PEG of 0.64 suggests the stock is reasonably priced for its growth.

Bear Case : LOW

The primary concerns for LOW are Altman Z-Score, Return on Equity, Profit Margin.

Bear Case : MHK

The primary concerns for MHK are Return on Equity, Profit Margin, Piotroski F-Score. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

MHK carries more volatility with a beta of 1.21 — expect wider price swings.

LOW is growing revenue faster at 10.3% — sustainability is the question.

LOW generates stronger free cash flow (2.8B), providing more financial flexibility.

Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MHK scores higher overall (69/100 vs 50/100). Both earn "Strong 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.

Lowe's Companies Inc

CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA

Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.

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Mohawk Industries Inc

CONSUMER CYCLICAL · FURNISHINGS, FIXTURES & APPLIANCES · USA

Mohawk Industries is an American flooring manufacturer based in Calhoun, Georgia, United States. Mohawk produces floor covering products for residential and commercial applications in North America and residential applications in Europe.

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