Caterpillar Inc (CAT)vsEnergy Recovery Inc (ERII)
CAT
Caterpillar Inc
$808.91
+3.35%
INDUSTRIALS · Cap: $409.91B
ERII
Energy Recovery Inc
$8.14
-3.10%
INDUSTRIALS · Cap: $434.01M
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 51687% more annual revenue ($70.75B vs $136.63M). ERII leads profitability with a 15.1% profit margin vs 13.3%. CAT appears more attractively valued with a PEG of 2.09. CAT earns a higher WallStSmart Score of 67/100 (B-).
CAT
Strong Buy67
out of 100
Grade: B-
ERII
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
+2.6%
Fair Value
$15.85
Current Price
$8.14
$7.71 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
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Revenue surging 20.3% year-over-year
Earnings expanding 20.1% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 20.0x book value
Weak financial health signals
Premium valuation, high expectations priced in
Smaller company, higher risk/reward
Expensive relative to growth rate
Operating margin of -103.3%
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 : ERII
The strongest argument for ERII centers on Debt/Equity, Altman Z-Score, Price/Book. Profitability is solid with margins at 15.1% and operating margin at -103.3%. Revenue growth of 20.3% 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 : ERII
The primary concerns for ERII are Market Cap, PEG Ratio, Operating Margin.
Key Dynamics to Monitor
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.
Monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CAT scores higher overall (67/100 vs 57/100) and 22.2% revenue growth. 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 →Energy Recovery Inc
INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA
Energy Recovery, Inc. designs, manufactures and sells various solutions for the industrial fluid flow markets worldwide. The company is headquartered in San Leandro, California.
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