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AOS vs DCI

AOS
A. O. Smith Corporation
NEUTRAL
Price
$72.46
Market Cap
$10.15B
Sector
Industrials
AI Confidence
75%
DCI
Donaldson Company, Inc.
BEARISH
Price
$88.96
Market Cap
$10.3B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
AOS
19.69
DCI
27.8
Forward P/E
AOS
17.96
DCI
20.35
P/B Ratio
AOS
5.47
DCI
6.54
P/S Ratio
AOS
2.65
DCI
2.75
EV/EBITDA
AOS
12.93
DCI
16.19

Profitability

Gross Margin
AOS
38.51%
DCI
34.6%
Operating Margin
AOS
18.63%
DCI
13.57%
Profit Margin
AOS
13.85%
DCI
10.09%
ROE
AOS
28.21%
DCI
24.27%
ROA
AOS
13.88%
DCI
11.8%

Growth

Revenue Growth
AOS
4.4%
DCI
3.0%
Earnings Growth
AOS
14.6%
DCI
-1.3%

Financial Health

Debt/Equity
AOS
0.12
DCI
0.43
Current Ratio
AOS
1.54
DCI
2.29
Quick Ratio
AOS
0.89
DCI
1.31

Dividends

Dividend Yield
AOS
1.92%
DCI
1.35%
Payout Ratio
AOS
36.66%
DCI
36.56%

AI Verdict

AOS NEUTRAL

AOS exhibits mixed financial health with a weak Piotroski F-Score of 4/9, indicating borderline stability, and lacks an Altman Z-Score for distress risk assessment. Despite solid profitability metrics like a 28.21% ROE and 18.63% operating margin, the company faces headwinds from declining Q/Q EPS growth (-12.1%) and bearish insider activity. Valuation is stretched relative to Graham's defensive standard ($33.12) but aligns with growth-based intrinsic value ($106.35), while trading below analyst target ($78.27). The stock shows resilience in earnings beats over time, though recent deceleration and technical bearishness temper optimism.

Strengths
Strong return on equity (28.21%) well above sector average (6.07%)
Low debt/equity ratio (0.12) indicating conservative capital structure
Consistent earnings beat history with 3 out of last 4 quarters exceeding estimates
Risks
Weak Piotroski F-Score (4/9) signaling suboptimal financial health
Negative Q/Q EPS growth (-12.1%) despite positive YoY growth
Bearish insider sentiment with $3M in net insider selling over last 6 months
DCI BEARISH

DCI presents a stable financial health profile with a Piotroski F-Score of 4/9 and low leverage, but it is severely overvalued. The current price of $88.96 trades at a massive premium to its Graham Number ($31.29) and Intrinsic Value ($22.40). With stagnant revenue growth (3%) and negative earnings growth (-1.3%), the current P/E of 27.80 is fundamentally unsupported. Bearish insider selling and a 0/100 technical trend further suggest a lack of immediate catalyst for growth.

Strengths
Strong Return on Equity (ROE) of 24.27%
Low Debt/Equity ratio of 0.43 indicating conservative leverage
High liquidity with a Current Ratio of 2.29
Risks
Extreme valuation gap between market price and intrinsic/Graham value
Negative earnings growth (-1.30% YoY and -3.50% Q/Q)
Bearish insider activity with $3.57M in sales and zero buys

Compare Another Pair

AOS vs DCI: Head-to-Head Comparison

This page compares A. O. Smith Corporation (AOS) and Donaldson Company, Inc. (DCI) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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