WallStSmart

Caterpillar Inc (CAT)vsFerguson Plc (FERG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 119% more annual revenue ($67.59B vs $30.80B). CAT leads profitability with a 13.1% profit margin vs 6.1%. FERG appears more attractively valued with a PEG of 1.66. FERG earns a higher WallStSmart Score of 57/100 (C).

CAT

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.5Value: 4.3Quality: 4.5
Piotroski: 3/9Altman Z: 2.40

FERG

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 7.0Value: 4.0Quality: 6.8
Piotroski: 4/9Altman Z: 3.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAT.

FERGSignificantly Overvalued (-38.0%)

Margin of Safety

-38.0%

Fair Value

$193.77

Current Price

$267.71

$73.94 premium

UndervaluedFair: $193.77Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT4 strengths · Avg: 9.0/10
Market CapQuality
$414.16B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
43.5%10/10

Every $100 of equity generates 44 in profit

Revenue GrowthGrowth
18.0%8/10

18.0% revenue growth

Free Cash FlowQuality
$2.25B8/10

Generating 2.2B in free cash flow

FERG3 strengths · Avg: 9.7/10
Return on EquityProfitability
33.4%10/10

Every $100 of equity generates 33 in profit

Altman Z-ScoreHealth
3.3410/10

Safe zone — low bankruptcy risk

Market CapQuality
$51.43B9/10

Large-cap with strong market position

Areas to Watch

CAT4 concerns · Avg: 3.3/10
PEG RatioValuation
2.174/10

Expensive relative to growth rate

Price/BookValuation
17.7x4/10

Trading at 17.7x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
44.2x2/10

Premium valuation, high expectations priced in

FERG4 concerns · Avg: 4.0/10
PEG RatioValuation
1.664/10

Expensive relative to growth rate

P/E RatioValuation
25.2x4/10

Moderate valuation

Price/BookValuation
8.9x4/10

Trading at 8.9x book value

Revenue GrowthGrowth
3.6%4/10

3.6% revenue growth

Comparative Analysis Report

WallStSmart Research

Bull 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 : FERG

The strongest argument for FERG centers on Return on Equity, Altman Z-Score, Market Cap.

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 : FERG

The primary concerns for FERG are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

CAT profiles as a growth stock while FERG 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

FERG scores higher overall (57/100 vs 55/100). 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.

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Ferguson Plc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Ferguson plc distributes plumbing and heating products in the United States, the United Kingdom, Canada and Central Europe. The company is headquartered in Wokingham, the United Kingdom.

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