WallStSmart

Caterpillar Inc (CAT)vsLB Foster Company (FSTR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 12416% more annual revenue ($67.59B vs $540.01M). CAT leads profitability with a 13.1% profit margin vs 1.4%. FSTR appears more attractively valued with a PEG of 0.24. FSTR 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

FSTR

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 5.0Value: 7.3Quality: 7.5
Piotroski: 3/9Altman Z: 3.52
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAT.

FSTRUndervalued (+29.9%)

Margin of Safety

+29.9%

Fair Value

$45.01

Current Price

$30.61

$14.40 discount

UndervaluedFair: $45.01Overvalued

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

FSTR4 strengths · Avg: 9.0/10
PEG RatioValuation
0.2410/10

Growing faster than its price suggests

Altman Z-ScoreHealth
3.5210/10

Safe zone — low bankruptcy risk

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
25.1%8/10

Revenue surging 25.1% year-over-year

Areas to Watch

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

Expensive relative to growth rate

Price/BookValuation
19.4x4/10

Trading at 19.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
44.2x2/10

Premium valuation, high expectations priced in

FSTR4 concerns · Avg: 3.0/10
Market CapQuality
$334.99M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.2%3/10

ROE of 4.2% — below average capital efficiency

Profit MarginProfitability
1.4%3/10

1.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : FSTR

The strongest argument for FSTR centers on PEG Ratio, Altman Z-Score, Price/Book. Revenue growth of 25.1% demonstrates continued momentum. PEG of 0.24 suggests the stock is reasonably priced for its growth.

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 : FSTR

The primary concerns for FSTR are Market Cap, Return on Equity, Profit Margin. A P/E of 46.4x leaves little room for execution misses. Thin 1.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

CAT carries more volatility with a beta of 1.52 — expect wider price swings.

FSTR is growing revenue faster at 25.1% — sustainability is the question.

CAT generates stronger free cash flow (2.2B), providing more financial flexibility.

Monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

FSTR scores higher overall (57/100 vs 55/100) and 25.1% revenue growth. 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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LB Foster Company

INDUSTRIALS · RAILROADS · USA

LB Foster Company provides products and services for the rail industry and solutions to support critical infrastructure projects globally. The company is headquartered in Pittsburgh, Pennsylvania.

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