AAR Corp (AIR)vsCaterpillar Inc (CAT)
AIR
AAR Corp
$105.69
-2.91%
INDUSTRIALS · Cap: $4.20B
CAT
Caterpillar Inc
$890.11
+9.88%
INDUSTRIALS · Cap: $414.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 2056% more annual revenue ($67.59B vs $3.13B). CAT leads profitability with a 13.1% profit margin vs 5.5%. CAT appears more attractively valued with a PEG of 2.17. AIR earns a higher WallStSmart Score of 63/100 (C+).
AIR
Buy63
out of 100
Grade: C+
CAT
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-39.9%
Fair Value
$81.19
Current Price
$105.69
$24.50 premium
Intrinsic value data unavailable for CAT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 92.0% YoY
Reasonable price relative to book value
Revenue surging 24.6% year-over-year
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
18.0% revenue growth
Generating 2.2B in free cash flow
Areas to Watch
Expensive relative to growth rate
5.5% margin — thin
Weak financial health signals
Expensive relative to growth rate
Trading at 19.4x book value
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : AIR
The strongest argument for AIR centers on EPS Growth, Price/Book, Revenue Growth. Revenue growth of 24.6% demonstrates continued momentum.
Bull Case : CAT
The strongest argument for CAT centers on Market Cap, Return on Equity, Revenue Growth. Revenue growth of 18.0% demonstrates continued momentum.
Bear Case : AIR
The primary concerns for AIR are PEG Ratio, Profit Margin, Piotroski F-Score.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 44.2x leaves little room for execution misses. Debt-to-equity of 2.03 is elevated, increasing financial risk.
Key Dynamics to Monitor
CAT carries more volatility with a beta of 1.52 — expect wider price swings.
AIR is growing revenue faster at 24.6% — sustainability is the question.
CAT generates stronger free cash flow (2.2B), providing more financial flexibility.
Monitor AEROSPACE & DEFENSE industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AIR scores higher overall (63/100 vs 55/100) and 24.6% revenue growth. Both earn "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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