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AROW vs BLW

AROW
Arrow Financial Corporation
NEUTRAL
Price
$32.48
Market Cap
$534.1M
Sector
Financial Services
AI Confidence
78%
BLW
BlackRock Limited Duration Income Trust
BEARISH
Price
$13.77
Market Cap
$533.4M
Sector
Financial Services
AI Confidence
68%

Valuation

P/E Ratio
AROW
12.26
BLW
9.91
Forward P/E
AROW
7.5
BLW
--
P/B Ratio
AROW
1.24
BLW
0.98
P/S Ratio
AROW
3.37
BLW
8.52
EV/EBITDA
AROW
--
BLW
--

Profitability

Gross Margin
AROW
0.0%
BLW
100.0%
Operating Margin
AROW
40.7%
BLW
91.48%
Profit Margin
AROW
27.76%
BLW
81.91%
ROE
AROW
10.56%
BLW
9.88%
ROA
AROW
1.0%
BLW
4.0%

Growth

Revenue Growth
AROW
37.0%
BLW
-3.4%
Earnings Growth
AROW
216.5%
BLW
26.0%

Financial Health

Debt/Equity
AROW
--
BLW
0.62
Current Ratio
AROW
--
BLW
0.07
Quick Ratio
AROW
--
BLW
0.06

Dividends

Dividend Yield
AROW
3.69%
BLW
9.86%
Payout Ratio
AROW
43.02%
BLW
97.73%

AI Verdict

AROW NEUTRAL

AROW's Piotroski F-Score of 3/9 indicates weak financial health, signaling potential distress in operational efficiency and capital structure. The absence of an Altman Z-Score raises concern about bankruptcy risk, especially given the lack of available debt and liquidity metrics. Despite strong profitability (27.76% margin) and explosive earnings growth (216.5% YoY), the stock trades at a premium to its Graham Number ($39.57) and intrinsic value ($78.17), suggesting overvaluation relative to conservative valuation models. The technical trend is bearish, and insider activity is neutral, with no recent trades. Analyst consensus is a hold, reflecting cautious sentiment.

Strengths
Exceptional profit margin of 27.76% and high operating margin of 40.70%
Impressive earnings growth of 216.5% YoY and 213.5% Q/Q
Strong historical earnings beat rate (3 out of last 4 quarters) with average surprise of 11.81%
Risks
Piotroski F-Score of 3/9 indicates weak financial health and operational instability
No Altman Z-Score available, raising unquantified bankruptcy risk
Stock trades below intrinsic value ($78.17) but above Graham Number ($39.57), suggesting overvaluation relative to conservative benchmarks
BLW BEARISH

The Advanced Deterministic Scorecard reveals a Piotroski F-Score of 5/9, indicating stable but not strong financial health, while the absence of an Altman Z-Score prevents a full distress risk assessment. Despite a high dividend yield of 9.86%, the payout ratio is alarmingly high at 97.73%, threatening sustainability. Profitability metrics are strong on paper with a 91.48% operating margin and 81.91% profit margin, but these are offset by weak liquidity (Current Ratio: 0.07) and negative revenue growth. The stock trades below its Graham Number of $20.91 and intrinsic value estimate of $41.0, suggesting potential undervaluation, but structural risks and poor technical trend (0/100) undermine this advantage.

Strengths
High profitability with operating margin of 91.48% and net margin of 81.91%
Low P/E ratio of 9.91 compared to sector average of 30.45, indicating potential undervaluation
Strong ROE of 9.88% in a sector where average ROE is negative (-9.78%)
Risks
Extremely weak liquidity with Current Ratio of 0.07 and Quick Ratio of 0.06, indicating near-term solvency concerns
Revenue declining YoY by -3.40%, suggesting underlying business contraction
Payout ratio of 97.73% jeopardizes dividend sustainability

Compare Another Pair

AROW vs BLW: Head-to-Head Comparison

This page compares Arrow Financial Corporation (AROW) and BlackRock Limited Duration Income Trust (BLW) 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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