AAR Corp (AIR)vsCaterpillar Inc (CAT)
AIR
AAR Corp
$108.73
+0.10%
INDUSTRIALS · Cap: $4.20B
CAT
Caterpillar Inc
$591.11
-5.23%
INDUSTRIALS · Cap: $286.26B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 2131% more annual revenue ($77.77B vs $3.49B). CAT leads profitability with a 15.2% profit margin vs 5.5%. CAT appears more attractively valued with a PEG of 1.08. CAT earns a higher WallStSmart Score of 75/100 (B+).
AIR
Buy55
out of 100
Grade: C
CAT
Strong Buy75
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-84.5%
Fair Value
$61.54
Current Price
$108.73
$47.19 premium
Intrinsic value data unavailable for CAT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Revenue surging 24.1% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 56 in profit
Strong operational efficiency at 20.5%
17.3% revenue growth
Earnings expanding 46.1% YoY
Generating 3.3B in free cash flow
Areas to Watch
Expensive relative to growth rate
4.4% earnings growth
5.5% margin — thin
Trading at 12.6x book value
Weak financial health signals
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : AIR
The strongest argument for AIR centers on Price/Book, Revenue Growth. Revenue growth of 24.1% demonstrates continued momentum.
Bull Case : CAT
The strongest argument for CAT centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 15.2% and operating margin at 20.5%. Revenue growth of 17.3% demonstrates continued momentum.
Bear Case : AIR
The primary concerns for AIR are PEG Ratio, EPS Growth, Profit Margin.
Bear Case : CAT
The primary concerns for CAT are Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.33 is elevated, increasing financial risk.
Key Dynamics to Monitor
CAT carries more volatility with a beta of 1.58 — expect wider price swings.
AIR is growing revenue faster at 24.1% — sustainability is the question.
CAT generates stronger free cash flow (3.3B), providing more financial flexibility.
Monitor AEROSPACE & DEFENSE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CAT scores higher overall (75/100 vs 55/100), backed by strong 15.2% margins and 17.3% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
AAR Corp
INDUSTRIALS · AEROSPACE & DEFENSE · USA
AAR Corp. The company is headquartered in Wood Dale, Illinois.
Visit Website →Caterpillar Inc
INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA
Caterpillar Inc. (often shortened to CAT) is an American Fortune 100 corporation that designs, develops, engineers, manufactures, markets, and sells machinery, engines, financial products, and insurance to customers via a worldwide dealer network.
Visit Website →Compare with Other AEROSPACE & DEFENSE Stocks
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