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GE vs GGG

GE
GE Aerospace
NEUTRAL
Price
$303.60
Market Cap
$320.24B
Sector
Industrials
AI Confidence
85%
GGG
Graco Inc.
BEARISH
Price
$80.54
Market Cap
$13.37B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
GE
37.71
GGG
26.32
Forward P/E
GE
35.2
GGG
23.83
P/B Ratio
GE
17.05
GGG
4.87
P/S Ratio
GE
6.98
GGG
5.94
EV/EBITDA
GE
30.66
GGG
17.63

Profitability

Gross Margin
GE
31.5%
GGG
52.31%
Operating Margin
GE
19.55%
GGG
25.51%
Profit Margin
GE
18.98%
GGG
22.96%
ROE
GE
44.69%
GGG
19.78%
ROA
GE
4.68%
GGG
12.01%

Growth

Revenue Growth
GE
17.6%
GGG
2.2%
Earnings Growth
GE
37.4%
GGG
-2.8%

Financial Health

Debt/Equity
GE
1.14
GGG
0.02
Current Ratio
GE
1.04
GGG
3.56
Quick Ratio
GE
0.69
GGG
2.5

Dividends

Dividend Yield
GE
0.62%
GGG
1.47%
Payout Ratio
GE
17.89%
GGG
36.6%

AI Verdict

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
GGG BEARISH

Graco Inc. (GGG) exhibits a stable financial health profile with a Piotroski F-Score of 4/9 and an exceptionally clean balance sheet (Debt/Equity 0.02). However, the stock is severely overvalued, trading at $80.54 despite a Graham Number of $33.74 and an Intrinsic Value of $21.42. Growth has stalled with negative YoY earnings growth (-2.80%) and a high PEG ratio of 2.52, indicating the price is not supported by current fundamentals. Bearish insider activity and a 0/100 technical trend further signal a lack of confidence in near-term upside.

Strengths
Exceptional balance sheet with near-zero debt (Debt/Equity 0.02)
Strong profitability margins (Gross Margin 52.31%, Operating Margin 25.51%)
High liquidity with a Current Ratio of 3.56
Risks
Severe valuation gap between current price and deterministic fair value models
Negative earnings growth trend (YoY -2.80%, Q/Q -4.50%)
Consistent earnings misses (only 1 of last 4 quarters beat estimates)

Compare Another Pair

GE vs GGG: Head-to-Head Comparison

This page compares GE Aerospace (GE) and Graco Inc. (GGG) 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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