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GE vs PCAR

GE
GE Aerospace
NEUTRAL
Price
$303.60
Market Cap
$320.24B
Sector
Industrials
AI Confidence
85%
PCAR
PACCAR Inc
NEUTRAL
Price
$127.20
Market Cap
$66.89B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
GE
37.71
PCAR
28.2
Forward P/E
GE
35.2
PCAR
18.76
P/B Ratio
GE
17.05
PCAR
3.47
P/S Ratio
GE
6.98
PCAR
2.35
EV/EBITDA
GE
30.66
PCAR
21.45

Profitability

Gross Margin
GE
31.5%
PCAR
14.01%
Operating Margin
GE
19.55%
PCAR
9.21%
Profit Margin
GE
18.98%
PCAR
8.35%
ROE
GE
44.69%
PCAR
12.92%
ROA
GE
4.68%
PCAR
4.37%

Growth

Revenue Growth
GE
17.6%
PCAR
-13.7%
Earnings Growth
GE
37.4%
PCAR
-35.9%

Financial Health

Debt/Equity
GE
1.14
PCAR
0.82
Current Ratio
GE
1.04
PCAR
2.17
Quick Ratio
GE
0.69
PCAR
1.94

Dividends

Dividend Yield
GE
0.62%
PCAR
1.04%
Payout Ratio
GE
17.89%
PCAR
29.27%

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
PCAR NEUTRAL

PACCAR exhibits strong fundamental health with a Piotroski F-Score of 7/9 and robust liquidity ratios, yet it faces a severe valuation disconnect. The current price of $127.20 trades at a significant premium to both the Graham Number ($61.0) and the growth-based Intrinsic Value ($31.57). While the balance sheet is a fortress, the company is currently grappling with sharp declines in YoY revenue (-13.7%) and earnings (-35.9%), coupled with bearish insider activity from the CEO and CFO.

Strengths
Strong financial health indicated by a Piotroski F-Score of 7/9
Excellent liquidity with a Current Ratio of 2.17 and Quick Ratio of 1.94
Conservative dividend payout ratio (29.27%) ensuring sustainability
Risks
Severe valuation premium compared to defensive fair value (Graham Number)
Significant contraction in growth with YoY earnings down 35.9%
Bearish insider sentiment with multiple C-suite sell transactions

Compare Another Pair

GE vs PCAR: Head-to-Head Comparison

This page compares GE Aerospace (GE) and PACCAR Inc (PCAR) 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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