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GE vs LECO

GE
GE Aerospace
NEUTRAL
Price
$303.60
Market Cap
$320.24B
Sector
Industrials
AI Confidence
85%
LECO
Lincoln Electric Holdings, Inc.
NEUTRAL
Price
$256.26
Market Cap
$14.05B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
GE
37.71
LECO
27.47
Forward P/E
GE
35.2
LECO
21.61
P/B Ratio
GE
17.05
LECO
9.56
P/S Ratio
GE
6.98
LECO
3.32
EV/EBITDA
GE
30.66
LECO
18.64

Profitability

Gross Margin
GE
31.5%
LECO
36.34%
Operating Margin
GE
19.55%
LECO
17.01%
Profit Margin
GE
18.98%
LECO
12.3%
ROE
GE
44.69%
LECO
37.22%
ROA
GE
4.68%
LECO
12.17%

Growth

Revenue Growth
GE
17.6%
LECO
5.5%
Earnings Growth
GE
37.4%
LECO
-0.3%

Financial Health

Debt/Equity
GE
1.14
LECO
0.92
Current Ratio
GE
1.04
LECO
1.82
Quick Ratio
GE
0.69
LECO
0.97

Dividends

Dividend Yield
GE
0.62%
LECO
1.23%
Payout Ratio
GE
17.89%
LECO
32.62%

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
LECO NEUTRAL

LECO exhibits strong fundamental health with a Piotroski F-Score of 7/9 and an exceptional ROE of 37.22%, indicating high operational efficiency. However, the stock is trading at a massive premium, with a current price of $256.26 far exceeding both the Graham Number ($75.01) and the growth-based Intrinsic Value ($65.31). While analyst sentiment remains bullish with a target of $290.44, this is contradicted by bearish insider selling and a 0/100 technical trend. The company is a high-quality industrial performer currently priced for perfection, leaving little margin of safety.

Strengths
Strong financial health evidenced by a Piotroski F-Score of 7/9
Exceptional Return on Equity (ROE) of 37.22%
Consistent track record of beating earnings estimates over 25 quarters
Risks
Severe valuation gap between current price and deterministic fair value (Graham/Intrinsic)
Stagnant year-over-year earnings growth (-0.30%)
Bearish insider activity, specifically sales by the CFO and General Counsel

Compare Another Pair

GE vs LECO: Head-to-Head Comparison

This page compares GE Aerospace (GE) and Lincoln Electric Holdings, Inc. (LECO) 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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