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GHM vs LZ

GHM
Graham Corporation
BEARISH
Price
$94.66
Market Cap
$1.05B
Sector
Industrials
AI Confidence
85%
LZ
LegalZoom.com, Inc.
BEARISH
Price
$5.91
Market Cap
$1.05B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
GHM
70.12
LZ
73.88
Forward P/E
GHM
47.57
LZ
7.34
P/B Ratio
GHM
7.92
LZ
6.11
P/S Ratio
GHM
4.41
LZ
1.39
EV/EBITDA
GHM
43.71
LZ
36.61

Profitability

Gross Margin
GHM
24.63%
LZ
65.88%
Operating Margin
GHM
7.02%
LZ
6.61%
Profit Margin
GHM
6.28%
LZ
2.04%
ROE
GHM
12.15%
LZ
11.64%
ROA
GHM
3.79%
LZ
1.83%

Growth

Revenue Growth
GHM
20.5%
LZ
17.7%
Earnings Growth
GHM
78.6%
LZ
-57.9%

Financial Health

Debt/Equity
GHM
0.05
LZ
0.08
Current Ratio
GHM
1.06
LZ
0.76
Quick Ratio
GHM
0.72
LZ
0.71

Dividends

Dividend Yield
GHM
--
LZ
--
Payout Ratio
GHM
0.0%
LZ
0.0%

AI Verdict

GHM BEARISH

GHM exhibits a severe disconnect between its market price ($94.66) and its deterministic value, with a Piotroski F-Score of 3/9 indicating weak operational health and a Graham Number of $19.05 suggesting extreme overvaluation. While the company shows explosive earnings growth (78.6% YoY) and maintains a very low debt-to-equity ratio (0.05), the valuation metrics (P/E 70.12, PEG 2.77) are unsustainable. The bearish technical trend (10/100) combined with a low quick ratio (0.72) suggests the stock is priced for perfection and vulnerable to a significant correction.

Strengths
Exceptional earnings growth (78.6% YoY)
Strong revenue growth (20.5% YoY)
Negligible debt levels (Debt/Equity 0.05)
Risks
Extreme valuation premium over intrinsic and Graham values
Weak operational health as indicated by Piotroski F-Score (3/9)
Poor short-term liquidity (Quick Ratio 0.72)
LZ BEARISH

LegalZoom exhibits a strong Piotroski F-Score of 7/9, indicating solid operational health and low leverage (Debt/Equity 0.08), yet it is fundamentally overvalued relative to its Graham Number ($1.32) and Intrinsic Value ($0.56). While revenue growth remains healthy at 17.7%, a severe collapse in earnings growth (-57.9% YoY) and a current ratio below 1.0 signal emerging financial instability. The stock is plagued by a disastrous long-term price trend (-84.4% over 5 years) and bearish insider activity, suggesting that operational improvements are not translating into shareholder value.

Strengths
Strong Piotroski F-Score (7/9) indicating operational improvement
Very low Debt/Equity ratio (0.08)
Consistent double-digit revenue growth (17.7% YoY)
Risks
Severe earnings contraction (-57.9% YoY)
Liquidity risk with a Current Ratio of 0.76 (below 1.0)
Significant valuation gap between current price ($5.91) and Graham Number ($1.32)

Compare Another Pair

GHM vs LZ: Head-to-Head Comparison

This page compares Graham Corporation (GHM) and LegalZoom.com, Inc. (LZ) 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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