WallStSmart

Veralto Corporation (VLTO)vsZurn Elkay Water Solutions Corporation (ZWS)

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Smart Verdict

WallStSmart Research — data-driven comparison

Veralto Corporation generates 219% more annual revenue ($5.70B vs $1.79B). VLTO leads profitability with a 17.3% profit margin vs 15.4%. ZWS appears more attractively valued with a PEG of 1.53. ZWS earns a higher WallStSmart Score of 70/100 (B-).

VLTO

Buy

60

out of 100

Grade: C

Growth: 5.3Profit: 8.5Value: 4.3Quality: 5.5
Piotroski: 3/9Altman Z: 2.20

ZWS

Strong Buy

70

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 4.7Quality: 7.5
Piotroski: 5/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for VLTO.

ZWSOvervalued (-5.9%)

Margin of Safety

-5.9%

Fair Value

$48.66

Current Price

$43.50

$5.16 premium

UndervaluedFair: $48.66Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

VLTO2 strengths · Avg: 9.0/10
Return on EquityProfitability
31.9%10/10

Every $100 of equity generates 32 in profit

Operating MarginProfitability
21.4%8/10

Strong operational efficiency at 21.4%

ZWS2 strengths · Avg: 10.0/10
Operating MarginProfitability
31.4%10/10

Strong operational efficiency at 31.4%

EPS GrowthGrowth
132.0%10/10

Earnings expanding 132.0% YoY

Areas to Watch

VLTO4 concerns · Avg: 3.5/10
P/E RatioValuation
25.4x4/10

Moderate valuation

Price/BookValuation
8.1x4/10

Trading at 8.1x book value

Debt/EquityHealth
1.093/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

ZWS3 concerns · Avg: 4.0/10
PEG RatioValuation
1.534/10

Expensive relative to growth rate

P/E RatioValuation
29.1x4/10

Moderate valuation

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : VLTO

The strongest argument for VLTO centers on Return on Equity, Operating Margin. Profitability is solid with margins at 17.3% and operating margin at 21.4%.

Bull Case : ZWS

The strongest argument for ZWS centers on Operating Margin, EPS Growth. Profitability is solid with margins at 15.4% and operating margin at 31.4%. Revenue growth of 10.5% demonstrates continued momentum.

Bear Case : VLTO

The primary concerns for VLTO are P/E Ratio, Price/Book, Debt/Equity.

Bear Case : ZWS

The primary concerns for ZWS are PEG Ratio, P/E Ratio, Altman Z-Score.

Key Dynamics to Monitor

ZWS carries more volatility with a beta of 0.83 — expect wider price swings.

ZWS is growing revenue faster at 10.5% — sustainability is the question.

VLTO generates stronger free cash flow (328M), providing more financial flexibility.

Monitor POLLUTION & TREATMENT CONTROLS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ZWS scores higher overall (70/100 vs 60/100), backed by strong 15.4% margins and 10.5% 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.

Veralto Corporation

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Veralto Corporation provides water supply services.

Zurn Elkay Water Solutions Corporation

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Zurn Water Solutions Corporation designs, acquires, manufactures, and markets water system solutions that provide and improve water quality, safety, flow control, and conservation in and around non-residential buildings. The company is headquartered in Milwaukee, Wisconsin.

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