WallStSmart

Allegiant Travel Company (ALGT)vsCaterpillar Inc (CAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 2482% more annual revenue ($74.73B vs $2.89B). CAT leads profitability with a 14.5% profit margin vs 0.9%. ALGT appears more attractively valued with a PEG of 0.85. CAT earns a higher WallStSmart Score of 73/100 (B).

ALGT

Strong Buy

70

out of 100

Grade: B

Growth: 8.0Profit: 4.0Value: 6.0Quality: 4.0
Piotroski: 4/9Altman Z: 1.18

CAT

Strong Buy

73

out of 100

Grade: B

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALGTUndervalued (+22.5%)

Margin of Safety

+22.5%

Fair Value

$141.05

Current Price

$78.27

$62.78 discount

UndervaluedFair: $141.05Overvalued

Intrinsic value data unavailable for CAT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALGT4 strengths · Avg: 9.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
36.9%10/10

Revenue surging 36.9% year-over-year

PEG RatioValuation
0.858/10

Growing faster than its price suggests

EPS GrowthGrowth
32.6%8/10

Earnings expanding 32.6% YoY

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

ALGT4 concerns · Avg: 2.5/10
Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Debt/EquityHealth
1.603/10

Elevated debt levels

P/E RatioValuation
65.6x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-3.1%2/10

ROE of -3.1% — below average capital efficiency

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 : ALGT

The strongest argument for ALGT centers on Price/Book, Revenue Growth, PEG Ratio. Revenue growth of 36.9% demonstrates continued momentum. PEG of 0.85 suggests the stock is reasonably priced for its growth.

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 : ALGT

The primary concerns for ALGT are Profit Margin, Debt/Equity, P/E Ratio. A P/E of 65.6x leaves little room for execution misses. Debt-to-equity of 1.60 is elevated, increasing financial risk.

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

ALGT profiles as a hypergrowth 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.

ALGT is growing revenue faster at 36.9% — 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 70/100) and 24.0% revenue growth. ALGT offers better value entry with a 22.5% margin of safety. Both earn "Strong Buy" and "Strong 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.

Allegiant Travel Company

INDUSTRIALS · AIRLINES · USA

Allegiant Travel Company, a leisure travel company, provides travel products and services to residents of underserved cities in the United States. The company is headquartered in Las Vegas, Nevada.

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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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