Caterpillar Inc (CAT)vsCanadian Pacific Kansas City Limited (CP)
CAT
Caterpillar Inc
$810.05
-0.96%
INDUSTRIALS · Cap: $414.16B
CP
Canadian Pacific Kansas City Limited
$86.95
+3.17%
INDUSTRIALS · Cap: $77.62B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 348% more annual revenue ($67.59B vs $15.08B). CP leads profitability with a 27.5% profit margin vs 13.1%. CAT appears more attractively valued with a PEG of 2.17. CP earns a higher WallStSmart Score of 56/100 (C).
CAT
Buy55
out of 100
Grade: C-
CP
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
+61.8%
Fair Value
$219.63
Current Price
$86.95
$132.68 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
18.0% revenue growth
Generating 2.2B in free cash flow
Strong operational efficiency at 44.0%
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Trading at 17.7x book value
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
Moderate valuation
1.3% revenue growth
Earnings declined 7.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : CAT
The strongest argument for CAT centers on Market Cap, Return on Equity, Revenue Growth. Revenue growth of 18.0% demonstrates continued momentum.
Bull Case : CP
The strongest argument for CP centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 27.5% and operating margin at 44.0%.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 44.2x leaves little room for execution misses. Debt-to-equity of 2.03 is elevated, increasing financial risk.
Bear Case : CP
The primary concerns for CP are PEG Ratio, P/E Ratio, Revenue Growth.
Key Dynamics to Monitor
CAT profiles as a growth stock while CP is a value play — different risk/reward profiles.
CAT carries more volatility with a beta of 1.52 — expect wider price swings.
CAT is growing revenue faster at 18.0% — sustainability is the question.
CAT generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
CP scores higher overall (56/100 vs 55/100), backed by strong 27.5% margins. Both earn "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.
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 Pacific Kansas City Limited
INDUSTRIALS · RAILROADS · USA
Canadian Pacific Railway Limited, owns and operates a transcontinental freight railway in Canada and the United States. The company is headquartered in Calgary, Canada.
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