Caterpillar Inc (CAT)vsCanadian Pacific Kansas City Limited (CP)
CAT
Caterpillar Inc
$904.28
+1.44%
INDUSTRIALS · Cap: $419.05B
CP
Canadian Pacific Kansas City Limited
$89.93
+0.48%
INDUSTRIALS · Cap: $80.03B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 372% more annual revenue ($70.75B vs $14.98B). CP leads profitability with a 27.2% profit margin vs 13.3%. CAT appears more attractively valued with a PEG of 2.06. CAT earns a higher WallStSmart Score of 67/100 (B-).
CAT
Strong Buy67
out of 100
Grade: B-
CP
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
+60.1%
Fair Value
$210.24
Current Price
$89.93
$120.31 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 37.6%
Large-cap with strong market position
Keeps 27 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 22.3x book value
Expensive relative to growth rate
Moderate valuation
Revenue declined 2.5%
Earnings declined 3.1%
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 : CP
The strongest argument for CP centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 27.2% and operating margin at 37.6%.
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.
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 declining play — different risk/reward profiles.
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.
Bottom Line
CAT scores higher overall (67/100 vs 54/100) and 22.2% revenue growth. CP offers better value entry with a 60.1% 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.
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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