Charles Schwab Corp (SCHW)vsWestern Digital Corporation (WDC)
SCHW
Charles Schwab Corp
$94.66
+0.71%
FINANCIAL SERVICES · Cap: $167.01B
WDC
Western Digital Corporation
$293.10
-7.52%
TECHNOLOGY · Cap: $100.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Charles Schwab Corp generates 123% more annual revenue ($23.92B vs $10.73B). SCHW leads profitability with a 37.0% profit margin vs 35.6%. WDC appears more attractively valued with a PEG of 0.69. SCHW earns a higher WallStSmart Score of 75/100 (B+).
SCHW
Strong Buy75
out of 100
Grade: B+
WDC
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+56.5%
Fair Value
$217.62
Current Price
$94.66
$122.96 discount
Margin of Safety
-311.2%
Fair Value
$66.57
Current Price
$293.10
$226.53 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 49.7%
Conservative balance sheet, low leverage
Large-cap with strong market position
18.9% revenue growth
Earnings expanding 41.1% YoY
Every $100 of equity generates 41 in profit
Keeps 36 of every $100 in revenue as profit
Large-cap with strong market position
Growing faster than its price suggests
Areas to Watch
Negative free cash flow — burning cash
Moderate valuation
Trading at 14.0x book value
Revenue declined 41.0%
Earnings declined 95.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : SCHW
The strongest argument for SCHW centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 37.0% and operating margin at 49.7%. Revenue growth of 18.9% demonstrates continued momentum.
Bull Case : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Market Cap. Profitability is solid with margins at 35.6% and operating margin at 15.4%. PEG of 0.69 suggests the stock is reasonably priced for its growth.
Bear Case : SCHW
The primary concerns for SCHW are Free Cash Flow.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
SCHW profiles as a growth stock while WDC is a declining play — different risk/reward profiles.
WDC carries more volatility with a beta of 1.85 — expect wider price swings.
SCHW is growing revenue faster at 18.9% — sustainability is the question.
WDC generates stronger free cash flow (653M), providing more financial flexibility.
Bottom Line
SCHW scores higher overall (75/100 vs 55/100), backed by strong 37.0% margins and 18.9% 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.
Charles Schwab Corp
FINANCIAL SERVICES · CAPITAL MARKETS · USA
The Charles Schwab Corporation is an American multinational financial services company. It offers banking, commercial banking, an electronic trading platform, and wealth management advisory services to both retail and institutional clients.
Visit Website →Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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