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LZMH vs RELL

LZMH
LZ Technology Holdings Limited
BEARISH
Price
$1.23
Market Cap
$187.0M
Sector
Technology
AI Confidence
95%
RELL
Richardson Electronics, Ltd.
BEARISH
Price
$13.65
Market Cap
$198.7M
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
LZMH
--
RELL
50.56
Forward P/E
LZMH
--
RELL
35.0
P/B Ratio
LZMH
18.93
RELL
1.24
P/S Ratio
LZMH
0.24
RELL
0.93
EV/EBITDA
LZMH
-5.95
RELL
29.15

Profitability

Gross Margin
LZMH
3.7%
RELL
30.64%
Operating Margin
LZMH
-10.05%
RELL
2.71%
Profit Margin
LZMH
-4.98%
RELL
1.75%
ROE
LZMH
-60.78%
RELL
2.4%
ROA
LZMH
-6.05%
RELL
0.64%

Growth

Revenue Growth
LZMH
-7.8%
RELL
3.1%
Earnings Growth
LZMH
--
RELL
--

Financial Health

Debt/Equity
LZMH
0.42
RELL
0.01
Current Ratio
LZMH
1.13
RELL
4.49
Quick Ratio
LZMH
1.04
RELL
1.5

Dividends

Dividend Yield
LZMH
--
RELL
1.76%
Payout Ratio
LZMH
0.0%
RELL
88.89%

AI Verdict

LZMH BEARISH

LZMH exhibits severe financial distress, anchored by a weak Piotroski F-Score of 3/9 and a catastrophic 1-year price decline of 85.9%. The company is struggling with negative revenue growth (-7.80%) and an unsustainable Return on Equity of -60.78%. While the Price-to-Sales ratio is low, the Price-to-Book ratio of 18.93 indicates the stock is trading at a massive premium relative to its actual assets despite failing fundamentals. Overall, the combination of negative margins and a total collapse in technical trend suggests a high-risk profile.

Strengths
Low Price-to-Sales ratio (0.24)
Manageable Debt-to-Equity ratio (0.42)
Current ratio remains above 1.0 (1.13)
Risks
Severe price collapse from 52-week high of $32.10 to $1.23
Negative revenue growth (-7.80% YoY)
Extremely thin gross margins (3.70%)
RELL BEARISH

RELL presents a dichotomy of a pristine balance sheet and severe valuation misalignment. While the Piotroski F-Score of 6/9 indicates stable financial health and the Debt/Equity ratio of 0.01 is exceptional, the stock is trading at a massive premium to its Graham Number ($8.18) and Intrinsic Value ($1.89). Profitability is dangerously thin with a profit margin of only 1.75%, and the dividend payout ratio of 88.89% is unsustainable. Combined with bearish insider selling from the CFO and Directors, the recent price surge appears fundamentally unsupported.

Strengths
Near-zero leverage with a Debt/Equity ratio of 0.01
Excellent short-term liquidity (Current Ratio 4.49)
Stable financial health as indicated by a Piotroski F-Score of 6/9
Risks
Extreme overvaluation relative to Graham Number and Intrinsic Value
Razor-thin net profit margins (1.75%) leaving no room for error
Unsustainable dividend payout ratio (88.89%)

Compare Another Pair

LZMH vs RELL: Head-to-Head Comparison

This page compares LZ Technology Holdings Limited (LZMH) and Richardson Electronics, Ltd. (RELL) 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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