Caterpillar Inc (CAT)vsFerguson Plc (FERG)
CAT
Caterpillar Inc
$591.11
-5.23%
INDUSTRIALS · Cap: $286.26B
FERG
Ferguson Plc
$248.53
+2.70%
INDUSTRIALS · Cap: $43.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 147% more annual revenue ($77.77B vs $31.45B). CAT leads profitability with a 15.2% profit margin vs 6.3%. CAT appears more attractively valued with a PEG of 1.08. CAT earns a higher WallStSmart Score of 75/100 (B+).
CAT
Strong Buy75
out of 100
Grade: B+
FERG
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
-78.3%
Fair Value
$149.95
Current Price
$248.53
$98.58 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 56 in profit
Strong operational efficiency at 20.5%
17.3% revenue growth
Earnings expanding 46.1% YoY
Generating 3.3B in free cash flow
Every $100 of equity generates 33 in profit
Areas to Watch
Trading at 12.6x book value
Weak financial health signals
Elevated debt levels
4.6% revenue growth
Distress zone — elevated risk
6.3% margin — thin
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : CAT
The strongest argument for CAT centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 15.2% and operating margin at 20.5%. Revenue growth of 17.3% demonstrates continued momentum.
Bull Case : FERG
The strongest argument for FERG centers on Return on Equity. PEG of 1.33 suggests the stock is reasonably priced for its growth.
Bear Case : CAT
The primary concerns for CAT are Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.33 is elevated, increasing financial risk.
Bear Case : FERG
The primary concerns for FERG are Revenue Growth, Altman Z-Score, Profit Margin.
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 1.58 — expect wider price swings.
CAT is growing revenue faster at 17.3% — sustainability is the question.
CAT generates stronger free cash flow (3.3B), providing more financial flexibility.
Bottom Line
CAT scores higher overall (75/100 vs 59/100), backed by strong 15.2% margins and 17.3% 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 →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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