WallStSmart

Parker-Hannifin Corporation (PH)vsVSE Corporation (VSEC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Parker-Hannifin Corporation generates 1740% more annual revenue ($20.46B vs $1.11B). PH leads profitability with a 17.3% profit margin vs 1.1%. VSEC appears more attractively valued with a PEG of 3.00. PH earns a higher WallStSmart Score of 54/100 (C-).

PH

Buy

54

out of 100

Grade: C-

Growth: 4.7Profit: 8.5Value: 3.7Quality: 5.8
Piotroski: 5/9Altman Z: 2.78

VSEC

Hold

42

out of 100

Grade: D

Growth: 6.7Profit: 5.0Value: 3.0Quality: 7.3
Piotroski: 5/9Altman Z: 2.33

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PH3 strengths · Avg: 8.7/10
Market CapQuality
$119.59B9/10

Large-cap with strong market position

Return on EquityProfitability
25.8%9/10

Every $100 of equity generates 26 in profit

Operating MarginProfitability
21.7%8/10

Strong operational efficiency at 21.7%

VSEC2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
32.4%10/10

Revenue surging 32.4% year-over-year

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

PH4 concerns · Avg: 3.0/10
P/E RatioValuation
34.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
8.0x4/10

Trading at 8.0x book value

PEG RatioValuation
3.912/10

Expensive relative to growth rate

EPS GrowthGrowth
-9.0%2/10

Earnings declined 9.0%

VSEC4 concerns · Avg: 2.5/10
Return on EquityProfitability
4.4%3/10

ROE of 4.4% — below average capital efficiency

Profit MarginProfitability
1.1%3/10

1.1% margin — thin

PEG RatioValuation
3.002/10

Expensive relative to growth rate

P/E RatioValuation
63.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : PH

The strongest argument for PH centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 17.3% and operating margin at 21.7%.

Bull Case : VSEC

The strongest argument for VSEC centers on Revenue Growth, Price/Book. Revenue growth of 32.4% demonstrates continued momentum.

Bear Case : PH

The primary concerns for PH are P/E Ratio, Price/Book, PEG Ratio.

Bear Case : VSEC

The primary concerns for VSEC are Return on Equity, Profit Margin, PEG Ratio. A P/E of 63.6x leaves little room for execution misses. Thin 1.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

PH profiles as a mature stock while VSEC is a hypergrowth play — different risk/reward profiles.

VSEC carries more volatility with a beta of 1.43 — expect wider price swings.

VSEC is growing revenue faster at 32.4% — sustainability is the question.

PH generates stronger free cash flow (768M), providing more financial flexibility.

Bottom Line

PH scores higher overall (54/100 vs 42/100), backed by strong 17.3% margins. Both earn "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.

Parker-Hannifin Corporation

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Parker-Hannifin Corporation, originally Parker Appliance Company, usually referred to as just Parker, is an American corporation specializing in motion and control technologies. Its corporate headquarters are in Mayfield Heights, Ohio, in Greater Cleveland.

VSE Corporation

INDUSTRIALS · AEROSPACE & DEFENSE · USA

VSE Corporation is a diversified aftermarket products and services company in the United States. The company is headquartered in Alexandria, Virginia.

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