WallStSmart

Arts-Way Manufacturing Co Inc (ARTW)vsCaterpillar Inc (CAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 288994% more annual revenue ($70.75B vs $24.47M). CAT leads profitability with a 13.3% profit margin vs 5.3%. CAT appears more attractively valued with a PEG of 2.06. CAT earns a higher WallStSmart Score of 67/100 (B-).

ARTW

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 4.5Value: 7.3Quality: 7.5
Piotroski: 3/9Altman Z: 3.12

CAT

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 4.3Quality: 4.5
Piotroski: 3/9Altman Z: 2.40
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ARTWUndervalued (+49.6%)

Margin of Safety

+49.6%

Fair Value

$4.56

Current Price

$2.60

$1.96 discount

UndervaluedFair: $4.56Overvalued

Intrinsic value data unavailable for CAT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ARTW5 strengths · Avg: 9.6/10
P/E RatioValuation
10.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
58.4%10/10

Earnings expanding 58.4% YoY

Altman Z-ScoreHealth
3.1210/10

Safe zone — low bankruptcy risk

Revenue GrowthGrowth
29.2%8/10

Revenue surging 29.2% year-over-year

CAT5 strengths · Avg: 8.8/10
Market CapQuality
$419.05B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
50.5%10/10

Every $100 of equity generates 50 in profit

Revenue GrowthGrowth
22.2%8/10

Revenue surging 22.2% year-over-year

EPS GrowthGrowth
30.2%8/10

Earnings expanding 30.2% YoY

Free Cash FlowQuality
$1.55B8/10

Generating 1.5B in free cash flow

Areas to Watch

ARTW4 concerns · Avg: 3.0/10
Market CapQuality
$13.37M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
5.3%3/10

5.3% margin — thin

Operating MarginProfitability
5.0%3/10

Operating margin of 5.0%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

CAT4 concerns · Avg: 2.8/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
45.2x2/10

Premium valuation, high expectations priced in

Price/BookValuation
22.3x2/10

Trading at 22.3x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ARTW

The strongest argument for ARTW centers on P/E Ratio, Price/Book, EPS Growth. Revenue growth of 29.2% demonstrates continued momentum.

Bull Case : CAT

The strongest argument for CAT centers on Market Cap, Return on Equity, Revenue Growth. Revenue growth of 22.2% demonstrates continued momentum.

Bear Case : ARTW

The primary concerns for ARTW are Market Cap, Profit Margin, Operating Margin.

Bear Case : CAT

The primary concerns for CAT are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 45.2x leaves little room for execution misses. Debt-to-equity of 2.31 is elevated, increasing financial risk.

Key Dynamics to Monitor

CAT carries more volatility with a beta of 1.63 — expect wider price swings.

ARTW is growing revenue faster at 29.2% — sustainability is the question.

CAT generates stronger free cash flow (1.5B), providing more financial flexibility.

Monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CAT scores higher overall (67/100 vs 61/100) and 22.2% revenue growth. ARTW offers better value entry with a 49.6% margin of safety. 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.

Arts-Way Manufacturing Co Inc

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

Art's-Way Manufacturing Co., Inc. manufactures and sells agricultural equipment, specialized modular science buildings, and steel cutting tools in the United States and internationally. The company is headquartered in Armstrong, Iowa.

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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