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CHDN vs LEA

CHDN
Churchill Downs Incorporated
NEUTRAL
Price
$90.84
Market Cap
$6.33B
Sector
Consumer Cyclical
AI Confidence
85%
LEA
Lear Corporation
NEUTRAL
Price
$124.16
Market Cap
$6.29B
Sector
Consumer Cyclical
AI Confidence
80%

Valuation

P/E Ratio
CHDN
17.57
LEA
15.25
Forward P/E
CHDN
12.56
LEA
7.36
P/B Ratio
CHDN
6.26
LEA
1.25
P/S Ratio
CHDN
2.16
LEA
0.27
EV/EBITDA
CHDN
11.89
LEA
5.44

Profitability

Gross Margin
CHDN
33.58%
LEA
7.5%
Operating Margin
CHDN
18.8%
LEA
4.4%
Profit Margin
CHDN
13.09%
LEA
1.88%
ROE
CHDN
35.71%
LEA
10.76%
ROA
CHDN
6.24%
LEA
4.49%

Growth

Revenue Growth
CHDN
6.7%
LEA
4.8%
Earnings Growth
CHDN
-25.2%
LEA
-2.0%

Financial Health

Debt/Equity
CHDN
4.92
LEA
0.67
Current Ratio
CHDN
0.6
LEA
1.35
Quick Ratio
CHDN
0.42
LEA
0.91

Dividends

Dividend Yield
CHDN
0.48%
LEA
2.48%
Payout Ratio
CHDN
8.28%
LEA
37.79%

AI Verdict

CHDN NEUTRAL

CHDN presents a stark contrast between analyst optimism and deterministic valuation metrics. While the Piotroski F-Score of 4/9 indicates stable health, the stock trades at a significant premium to its Graham Number ($41.08) and Intrinsic Value ($36.19). High leverage (Debt/Equity of 4.92) and poor liquidity (Current Ratio 0.60) are offset by an exceptional ROE of 35.71%. The primary concern is the divergence between modest revenue growth (6.7%) and a sharp decline in earnings growth (-25.2%).

Strengths
Exceptional Return on Equity (ROE) of 35.71%
Strong analyst consensus with a 'strong_buy' rating and target price of $135.58
P/E ratio (17.57) is significantly lower than the Consumer Cyclical sector average (33.44)
Risks
Severe earnings contraction (-25.2% YoY and -28.5% Q/Q)
High financial leverage with a Debt/Equity ratio of 4.92
Liquidity risk indicated by a Current Ratio of 0.60 and Quick Ratio of 0.42
LEA NEUTRAL

Lear Corporation presents a complex profile characterized by a stable Piotroski F-Score of 6/9 and a valuation that is defensively attractive, trading below its Graham Number of $134.94. While the forward P/E of 7.36 and PEG of 0.36 suggest significant undervaluation, this is offset by razor-thin profit margins (1.88%) and a bearish technical trend. The stark contrast between the Graham Number and the growth-based intrinsic value ($56.98) indicates a stock that is valued more for its assets and current earnings than for future growth. Overall, the strong analyst 'buy' consensus is countered by bearish insider selling and weak technical momentum.

Strengths
Highly attractive valuation metrics (Forward P/E 7.36, PEG 0.36)
Trading below the Graham Number ($134.94), providing a defensive margin of safety
Consistent history of earnings beats over the last 25 quarters
Risks
Extremely low profit margins (1.88%) leave little room for error in a cyclical industry
Bearish insider sentiment with 7 sell transactions and 0 buys in the last 6 months
Technical trend is currently 0/100 (Bearish)

Compare Another Pair

CHDN vs LEA: Head-to-Head Comparison

This page compares Churchill Downs Incorporated (CHDN) and Lear Corporation (LEA) 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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