WallStSmart

Caterpillar Inc (CAT)vsCompass Diversified Holdings (CODI)

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Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 4070% more annual revenue ($74.73B vs $1.79B). CAT leads profitability with a 14.5% profit margin vs -5.3%. CAT appears more attractively valued with a PEG of 1.41. CAT earns a higher WallStSmart Score of 73/100 (B).

CAT

Strong Buy

73

out of 100

Grade: B

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

CODI

Hold

40

out of 100

Grade: F

Growth: 2.7Profit: 3.5Value: 5.7Quality: 4.5
Piotroski: 4/9Altman Z: 0.22
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAT.

CODIUndervalued (+74.2%)

Margin of Safety

+74.2%

Fair Value

$25.83

Current Price

$11.25

$14.58 discount

UndervaluedFair: $25.83Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT6 strengths · Avg: 9.0/10
Market CapQuality
$373.27B10/10

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

CODI0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

CAT4 concerns · Avg: 3.0/10
P/E RatioValuation
34.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
19.5x4/10

Trading at 19.5x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
2.331/10

Elevated debt levels

CODI4 concerns · Avg: 2.3/10
Market CapQuality
$828.35M3/10

Smaller company, higher risk/reward

PEG RatioValuation
2.652/10

Expensive relative to growth rate

Return on EquityProfitability
-15.6%2/10

ROE of -15.6% — below average capital efficiency

Revenue GrowthGrowth
-11.4%2/10

Revenue declined 11.4%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : CODI

CODI has a balanced fundamental profile.

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.

Bear Case : CODI

The primary concerns for CODI are Market Cap, PEG Ratio, Return on Equity. Debt-to-equity of 3.70 is elevated, increasing financial risk.

Key Dynamics to Monitor

CAT profiles as a growth stock while CODI is a turnaround 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 40/100) and 24.0% revenue growth. CODI offers better value entry with a 74.2% margin of safety. Both earn "Strong Buy" and "Hold" 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.

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Compass Diversified Holdings

INDUSTRIALS · CONGLOMERATES · USA

Compass Diversified Holdings (CODI) is a leading private equity firm that specializes in the acquisition and management of a diverse portfolio of middle-market companies across sectors such as consumer products, industrials, and outdoor goods. The firm is committed to operational excellence and value creation, employing strategic enhancements to drive sustainable growth and performance improvements across its investments. With a strong focus on long-term value and attractive risk-adjusted returns, CODI leverages its extensive industry expertise and disciplined investment approach to deliver compelling opportunities for institutional investors in the alternative investment landscape.

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