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ETN vs GE

ETN
Eaton Corporation plc
BULLISH
Price
$352.39
Market Cap
$137.52B
Sector
Industrials
AI Confidence
88%
GE
GE Aerospace
NEUTRAL
Price
$303.60
Market Cap
$320.24B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
ETN
35.34
GE
37.71
Forward P/E
ETN
29.24
GE
35.2
P/B Ratio
ETN
7.26
GE
17.05
P/S Ratio
ETN
5.16
GE
6.98
EV/EBITDA
ETN
24.14
GE
30.66

Profitability

Gross Margin
ETN
38.27%
GE
31.5%
Operating Margin
ETN
19.78%
GE
19.55%
Profit Margin
ETN
14.74%
GE
18.98%
ROE
ETN
20.65%
GE
44.69%
ROA
ETN
8.03%
GE
4.68%

Growth

Revenue Growth
ETN
10.1%
GE
17.6%
Earnings Growth
ETN
2.4%
GE
37.4%

Financial Health

Debt/Equity
ETN
0.6
GE
1.14
Current Ratio
ETN
1.28
GE
1.04
Quick Ratio
ETN
0.71
GE
0.69

Dividends

Dividend Yield
ETN
1.18%
GE
0.62%
Payout Ratio
ETN
40.64%
GE
17.89%

AI Verdict

ETN BULLISH

Eaton Corporation (ETN) exhibits strong fundamental quality with consistent earnings outperformance, robust profitability, and a resilient growth trajectory despite near-term macro headwinds. The stock trades at a premium valuation (P/E 35.35 vs sector 26.18), justified by superior margin profile (19.78% operating margin) and reliable execution, as evidenced by 24 of the last 25 quarters beating EPS estimates. While insider selling raises a minor concern, the overwhelming analyst consensus (24 analysts, Buy rating) and strong long-term price momentum (225.4% over 5Y) support continued outperformance. Relative to peers like HON and DE, ETN demonstrates better earnings stability and capital efficiency, positioning it well for structural tailwinds in electrification and industrial automation.

Strengths
Consistent earnings beat streak: 24 of last 25 quarters beat EPS estimates, with 10+ consecutive quarters of positive surprises exceeding 0.5%
Superior profitability: 19.78% operating margin and 14.74% net margin significantly above sector averages of 11.10%
High return on equity: 20.65% ROE, reflecting efficient capital allocation despite lower leverage than peers
Risks
Rich valuation: P/E of 35.35 is 35% above sector average (26.18), increasing sensitivity to growth deceleration
Insider selling: Recent $5.74M sale by an officer signals lack of near-term confidence despite strong fundamentals
Elevated price-to-book: 7.26x vs sector median, suggesting potential overvaluation if ROE regresses
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

ETN vs GE: Head-to-Head Comparison

This page compares Eaton Corporation plc (ETN) 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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