Caterpillar Inc (CAT)vsCanadian National Railway Company (CNI)
CAT
Caterpillar Inc
$808.91
+3.38%
INDUSTRIALS · Cap: $409.91B
CNI
Canadian National Railway Company
$127.13
-2.09%
INDUSTRIALS · Cap: $78.35B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 298% more annual revenue ($70.75B vs $17.76B). CNI leads profitability with a 26.9% profit margin vs 13.3%. CAT appears more attractively valued with a PEG of 2.09. CNI earns a higher WallStSmart Score of 67/100 (B-).
CAT
Strong Buy67
out of 100
Grade: B-
CNI
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
+2.5%
Fair Value
$109.08
Current Price
$127.13
$18.05 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 50 in profit
Revenue surging 22.2% year-over-year
Earnings expanding 30.2% YoY
Generating 1.5B in free cash flow
Strong operational efficiency at 40.3%
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Keeps 27 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Trading at 20.0x book value
Weak financial health signals
Premium valuation, high expectations priced in
Elevated debt levels
Expensive relative to growth rate
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : CAT
The strongest argument for CAT centers on Market Cap, Return on Equity, Revenue Growth. Revenue growth of 22.2% demonstrates continued momentum.
Bull Case : CNI
The strongest argument for CNI centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 26.9% and operating margin at 40.3%. Revenue growth of 11.3% demonstrates continued momentum.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 43.1x leaves little room for execution misses. Debt-to-equity of 2.31 is elevated, increasing financial risk.
Bear Case : CNI
The primary concerns for CNI are Debt/Equity, PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
CAT profiles as a growth stock while CNI is a mature play — different risk/reward profiles.
CAT carries more volatility with a beta of 1.56 — 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.
Bottom Line
CAT scores higher overall (67/100 vs 67/100) and 22.2% revenue growth. 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.
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 →Canadian National Railway Company
INDUSTRIALS · RAILROADS · USA
Canadian National Railway Company, is engaged in the rail and related transportation business. The company is headquartered in Montreal, Canada.
Visit Website →Compare with Other FARM & HEAVY CONSTRUCTION MACHINERY Stocks
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