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AOS vs IESC

AOS
A. O. Smith Corporation
NEUTRAL
Price
$72.46
Market Cap
$10.15B
Sector
Industrials
AI Confidence
75%
IESC
IES Holdings, Inc.
NEUTRAL
Price
$532.78
Market Cap
$10.62B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
AOS
19.69
IESC
31.64
Forward P/E
AOS
17.96
IESC
--
P/B Ratio
AOS
5.47
IESC
11.05
P/S Ratio
AOS
2.65
IESC
3.04
EV/EBITDA
AOS
12.93
IESC
22.86

Profitability

Gross Margin
AOS
38.51%
IESC
25.81%
Operating Margin
AOS
18.63%
IESC
11.28%
Profit Margin
AOS
13.85%
IESC
9.77%
ROE
AOS
28.21%
IESC
41.74%
ROA
AOS
13.88%
IESC
17.43%

Growth

Revenue Growth
AOS
4.4%
IESC
16.2%
Earnings Growth
AOS
14.6%
IESC
65.8%

Financial Health

Debt/Equity
AOS
0.12
IESC
0.07
Current Ratio
AOS
1.54
IESC
1.8
Quick Ratio
AOS
0.89
IESC
1.58

Dividends

Dividend Yield
AOS
1.92%
IESC
--
Payout Ratio
AOS
36.66%
IESC
0.0%

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
IESC NEUTRAL

IESC exhibits strong fundamental health with a Piotroski F-Score of 7/9 and an exceptionally low Debt/Equity ratio of 0.07. While the company demonstrates elite profitability (ROE 41.74%) and robust earnings growth (65.8% YoY), the stock is currently trading at a premium, exceeding both its Intrinsic Value ($496.78) and the analyst target price ($458.00). The divergence between stellar operational performance and bearish insider sentiment/technical trends suggests the stock may be overextended after its massive 1-year run (+194.9%).

Strengths
Strong financial health indicated by a Piotroski F-Score of 7/9
Exceptional Return on Equity (ROE) of 41.74%
Negligible leverage with a Debt/Equity ratio of 0.07
Risks
Significant valuation premium (Price/Book of 11.05)
Bearish insider activity with $50.76M in recent sales
Current price ($532.78) is well above the analyst target price ($458.00)

Compare Another Pair

AOS vs IESC: Head-to-Head Comparison

This page compares A. O. Smith Corporation (AOS) and IES Holdings, Inc. (IESC) 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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