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ESP vs GE

ESP
Espey Mfg. & Electronics Corp.
NEUTRAL
Price
$68.61
Market Cap
$203.0M
Sector
Industrials
AI Confidence
85%
GE
GE Aerospace
NEUTRAL
Price
$303.60
Market Cap
$320.24B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
ESP
19.89
GE
37.71
Forward P/E
ESP
18.9
GE
35.2
P/B Ratio
ESP
3.54
GE
17.05
P/S Ratio
ESP
4.94
GE
6.98
EV/EBITDA
ESP
15.99
GE
30.66

Profitability

Gross Margin
ESP
34.4%
GE
31.5%
Operating Margin
ESP
25.3%
GE
19.55%
Profit Margin
ESP
23.37%
GE
18.98%
ROE
ESP
19.61%
GE
44.69%
ROA
ESP
8.19%
GE
4.68%

Growth

Revenue Growth
ESP
-10.8%
GE
17.6%
Earnings Growth
ESP
39.4%
GE
37.4%

Financial Health

Debt/Equity
ESP
--
GE
1.14
Current Ratio
ESP
2.53
GE
1.04
Quick Ratio
ESP
1.61
GE
0.69

Dividends

Dividend Yield
ESP
1.46%
GE
0.62%
Payout Ratio
ESP
28.99%
GE
17.89%

AI Verdict

ESP NEUTRAL

ESP presents a dichotomy of strong current profitability and concerning forward-looking indicators. While the Piotroski F-Score of 4/9 indicates stable financial health and margins remain robust, the company is facing a revenue contraction of -10.8% YoY. Most critically, management has explicitly warned in the 10-K that net income per share is expected to decline in fiscal 2026 due to higher costs in the existing backlog. With heavy insider selling and a technical trend score of 10/100, the stock appears overextended relative to its defensive Graham value of $38.77.

Strengths
Strong profitability margins (Profit Margin 23.37%, Operating Margin 25.30%)
Healthy liquidity position with a Current Ratio of 2.53 and Quick Ratio of 1.61
Strong Return on Equity (ROE) of 19.61%
Risks
Negative revenue growth (-10.8% YoY and Q/Q)
Management guidance forecasting a decline in EPS for fiscal 2026
Severe supply chain disruptions with component lead times exceeding one year
GE NEUTRAL

GE Aerospace exhibits a stark divergence between its operational growth and its deterministic financial health, highlighted by a weak Piotroski F-Score of 3/9. While the company delivers impressive earnings growth (37.4% YoY) and high ROE (44.69%), it trades at a significant premium to both its Graham Number ($56.79) and Intrinsic Value ($237.48). The valuation is stretched with a PEG ratio of 5.24, suggesting that current price levels have priced in aggressive future success. Despite strong analyst 'strong_buy' recommendations, the combination of poor deterministic health and bearish insider activity warrants a cautious approach.

Strengths
Exceptional Return on Equity (ROE) of 44.69%
Strong earnings track record with consistent beats and high average surprise (25.12%)
Robust revenue growth (17.6% YoY) and earnings growth (37.4% YoY)
Risks
Weak deterministic health indicated by a Piotroski F-Score of 3/9
Extreme valuation metrics, specifically a PEG ratio of 5.24 and P/B of 17.05
Tight liquidity position with a Quick Ratio of 0.69

Compare Another Pair

ESP vs GE: Head-to-Head Comparison

This page compares Espey Mfg. & Electronics Corp. (ESP) and GE Aerospace (GE) 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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