Smith AO Corporation (AOS)vsCaterpillar Inc (CAT)
AOS
Smith AO Corporation
$57.39
+1.20%
INDUSTRIALS · Cap: $7.99B
CAT
Caterpillar Inc
$818.57
+1.69%
INDUSTRIALS · Cap: $376.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 1864% more annual revenue ($74.73B vs $3.80B). CAT leads profitability with a 14.5% profit margin vs 13.2%. CAT appears more attractively valued with a PEG of 1.41. CAT earns a higher WallStSmart Score of 73/100 (B).
AOS
Buy55
out of 100
Grade: C
CAT
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1.9%
Fair Value
$78.76
Current Price
$57.39
$21.37 premium
Intrinsic value data unavailable for CAT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Every $100 of equity generates 28 in profit
Attractively priced relative to earnings
Mega-cap, among the largest globally
Every $100 of equity generates 56 in profit
Earnings expanding 68.2% YoY
Strong operational efficiency at 22.2%
Revenue surging 24.0% year-over-year
Generating 3.3B in free cash flow
Areas to Watch
Revenue declined 0.7%
Earnings declined 15.0%
Premium valuation, high expectations priced in
Trading at 19.4x book value
Weak financial health signals
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : AOS
The strongest argument for AOS centers on Altman Z-Score, Return on Equity, P/E Ratio. PEG of 1.43 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 : AOS
The primary concerns for AOS are Revenue Growth, EPS Growth.
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
AOS profiles as a declining 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 55/100) 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.
Smith AO Corporation
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
A. O. Smith Corporation is an American manufacturer of both residential and commercial water heaters and boilers and the largest manufacturer and marketer of water heaters in North America. It also supplies water treatment products in the Asian market.
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 SPECIALTY INDUSTRIAL MACHINERY Stocks
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