WallStSmart

Applied Industrial Technologies (AIT)vsCaterpillar Inc (CAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 1405% more annual revenue ($74.73B vs $4.97B). CAT leads profitability with a 14.5% profit margin vs 8.3%. CAT appears more attractively valued with a PEG of 1.41. CAT earns a higher WallStSmart Score of 73/100 (B).

AIT

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 7.0Value: 4.3Quality: 7.8
Piotroski: 6/9

CAT

Strong Buy

73

out of 100

Grade: B

Growth: 7.3Profit: 8.0Value: 5.0Quality: 4.5
Piotroski: 3/9Altman Z: 2.40

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AIT2 strengths · Avg: 9.0/10
Return on EquityProfitability
22.3%9/10

Every $100 of equity generates 22 in profit

Debt/EquityHealth
0.269/10

Conservative balance sheet, low leverage

CAT6 strengths · Avg: 9.0/10
Market CapQuality
$376.28B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
55.9%10/10

Every $100 of equity generates 56 in profit

EPS GrowthGrowth
68.2%10/10

Earnings expanding 68.2% YoY

Operating MarginProfitability
22.2%8/10

Strong operational efficiency at 22.2%

Revenue GrowthGrowth
24.0%8/10

Revenue surging 24.0% year-over-year

Free Cash FlowQuality
$3.26B8/10

Generating 3.3B in free cash flow

Areas to Watch

AIT2 concerns · Avg: 3.0/10
P/E RatioValuation
29.9x4/10

Moderate valuation

PEG RatioValuation
2.712/10

Expensive relative to growth rate

CAT4 concerns · Avg: 3.0/10
P/E RatioValuation
34.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
19.4x4/10

Trading at 19.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
2.331/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : AIT

The strongest argument for AIT centers on Return on Equity, Debt/Equity. Revenue growth of 10.4% demonstrates continued momentum.

Bull Case : CAT

The strongest argument for CAT centers on Market Cap, Return on Equity, EPS Growth. Revenue growth of 24.0% demonstrates continued momentum. PEG of 1.41 suggests the stock is reasonably priced for its growth.

Bear Case : AIT

The primary concerns for AIT are P/E Ratio, PEG Ratio.

Bear Case : CAT

The primary concerns for CAT are P/E Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 2.33 is elevated, increasing financial risk.

Key Dynamics to Monitor

AIT profiles as a value stock while CAT is a growth play — different risk/reward profiles.

CAT carries more volatility with a beta of 1.59 — expect wider price swings.

CAT is growing revenue faster at 24.0% — sustainability is the question.

CAT generates stronger free cash flow (3.3B), providing more financial flexibility.

Bottom Line

CAT scores higher overall (73/100 vs 57/100) and 24.0% 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.

Applied Industrial Technologies

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Applied Industrial Technologies, Inc. distributes industrial products in North America, Australia, New Zealand, and Singapore. The company is headquartered in Cleveland, Ohio.

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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.

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