WallStSmart

ATS Corporation (ATS)vsCaterpillar Inc (CAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 2427% more annual revenue ($70.75B vs $2.80B). CAT leads profitability with a 13.3% profit margin vs 0.7%. CAT trades at a lower P/E of 44.6x. CAT earns a higher WallStSmart Score of 67/100 (B-).

ATS

Buy

51

out of 100

Grade: C-

Growth: 8.0Profit: 4.5Value: 5.7Quality: 5.0
Piotroski: 2/9Altman Z: 1.31

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

ATSUndervalued (+34.9%)

Margin of Safety

+34.9%

Fair Value

$47.28

Current Price

$35.38

$11.90 discount

UndervaluedFair: $47.28Overvalued

Intrinsic value data unavailable for CAT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ATS3 strengths · Avg: 8.7/10
EPS GrowthGrowth
358.0%10/10

Earnings expanding 358.0% YoY

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

CAT5 strengths · Avg: 8.8/10
Market CapQuality
$412.55B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
51.3%10/10

Every $100 of equity generates 51 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

ATS4 concerns · Avg: 2.8/10
Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
247.4x2/10

Premium valuation, high expectations priced in

CAT4 concerns · Avg: 2.8/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
44.6x2/10

Premium valuation, high expectations priced in

Price/BookValuation
22.3x2/10

Trading at 22.3x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ATS

The strongest argument for ATS centers on EPS Growth, Price/Book, Revenue Growth. Revenue growth of 16.7% 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 : ATS

The primary concerns for ATS are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 247.4x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.

Bear Case : CAT

The primary concerns for CAT are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 44.6x 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 1.63 — expect wider price swings.

CAT is growing revenue faster at 22.2% — sustainability is the question.

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

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CAT scores higher overall (67/100 vs 51/100) and 22.2% revenue growth. ATS offers better value entry with a 34.9% 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.

ATS Corporation

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

ATS Corporation is a premier provider of automated manufacturing solutions, adept in systems integration and cutting-edge automation technologies. Catering to diverse sectors such as automotive, medical devices, and electronics, ATS designs and implements bespoke manufacturing equipment that enhances productivity and operational efficiency. With a robust global footprint and a strong commitment to innovation and sustainability, the company is positioned to address the dynamic needs of its clients while seizing growth opportunities in the booming automation market. This strategic focus on advanced manufacturing positions ATS as a compelling investment for institutional investors seeking exposure to the rapidly evolving automation landscape.

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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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