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FERG vs GE

FERG
Ferguson Enterprises Inc.
NEUTRAL
Price
$263.59
Market Cap
$52.92B
Sector
Industrials
AI Confidence
80%
GE
GE Aerospace
NEUTRAL
Price
$303.60
Market Cap
$320.24B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
FERG
25.97
GE
37.71
Forward P/E
FERG
21.31
GE
35.2
P/B Ratio
FERG
8.78
GE
17.05
P/S Ratio
FERG
1.72
GE
6.98
EV/EBITDA
FERG
18.8
GE
30.66

Profitability

Gross Margin
FERG
30.62%
GE
31.5%
Operating Margin
FERG
7.89%
GE
19.55%
Profit Margin
FERG
6.12%
GE
18.98%
ROE
FERG
--
GE
44.69%
ROA
FERG
--
GE
4.68%

Growth

Revenue Growth
FERG
3.6%
GE
17.6%
Earnings Growth
FERG
11.7%
GE
37.4%

Financial Health

Debt/Equity
FERG
0.92
GE
1.14
Current Ratio
FERG
1.86
GE
1.04
Quick Ratio
FERG
0.86
GE
0.69

Dividends

Dividend Yield
FERG
1.35%
GE
0.62%
Payout Ratio
FERG
33.27%
GE
17.89%

AI Verdict

FERG NEUTRAL

FERG presents a dichotomy between strong operational execution and stretched valuation. The Piotroski F-Score of 4/9 indicates stable but not robust financial health, while the Graham Number of $82.81 suggests the stock is trading at a significant defensive premium. Despite a strong track record of earnings beats and a sustainable dividend payout, the bearish technical trend (10/100) and weak insider sentiment (40/100) suggest a potential near-term ceiling. The stock is currently trading slightly above its growth-based intrinsic value of $249.18.

Strengths
Consistent earnings beat track record (3/4 last 4 quarters with 14.68% avg surprise)
Sustainable dividend profile with a low payout ratio of 33.27%
Strong 1-year price appreciation of 57.9%
Risks
Significant valuation gap compared to Graham Number ($82.81 vs $263.59)
Very high Price-to-Book ratio (8.78) indicating high premium over assets
Sluggish year-over-year revenue growth of only 3.60%
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

FERG vs GE: Head-to-Head Comparison

This page compares Ferguson Enterprises Inc. (FERG) 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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