WallStSmart

Caterpillar Inc (CAT)vsGATX Corporation (GATX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 3619% more annual revenue ($70.75B vs $1.90B). GATX leads profitability with a 17.9% profit margin vs 13.3%. GATX appears more attractively valued with a PEG of 0.64. GATX earns a higher WallStSmart Score of 73/100 (B).

CAT

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 4.3Quality: 4.5
Piotroski: 3/9Altman Z: 2.40

GATX

Strong Buy

73

out of 100

Grade: B

Growth: 8.0Profit: 7.0Value: 6.3Quality: 3.0
Piotroski: 3/9Altman Z: 0.68

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT5 strengths · Avg: 8.8/10
Market CapQuality
$419.05B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
50.5%10/10

Every $100 of equity generates 50 in profit

Revenue GrowthGrowth
22.2%8/10

Revenue surging 22.2% year-over-year

EPS GrowthGrowth
30.2%8/10

Earnings expanding 30.2% YoY

Free Cash FlowQuality
$1.55B8/10

Generating 1.5B in free cash flow

GATX4 strengths · Avg: 8.5/10
Revenue GrowthGrowth
38.4%10/10

Revenue surging 38.4% year-over-year

PEG RatioValuation
0.648/10

Growing faster than its price suggests

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
29.8%8/10

Strong operational efficiency at 29.8%

Areas to Watch

CAT4 concerns · Avg: 2.8/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
45.2x2/10

Premium valuation, high expectations priced in

Price/BookValuation
22.3x2/10

Trading at 22.3x book value

GATX4 concerns · Avg: 2.0/10
Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-4.32B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.682/10

Distress zone — elevated risk

Debt/EquityHealth
4.551/10

Elevated debt levels

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 22.2% demonstrates continued momentum.

Bull Case : GATX

The strongest argument for GATX centers on Revenue Growth, PEG Ratio, Price/Book. Profitability is solid with margins at 17.9% and operating margin at 29.8%. Revenue growth of 38.4% demonstrates continued momentum.

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 : GATX

The primary concerns for GATX are Piotroski F-Score, Free Cash Flow, Altman Z-Score. Debt-to-equity of 4.55 is elevated, increasing financial risk.

Key Dynamics to Monitor

CAT carries more volatility with a beta of 1.63 — expect wider price swings.

GATX is growing revenue faster at 38.4% — 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

GATX scores higher overall (73/100 vs 67/100), backed by strong 17.9% margins and 38.4% revenue growth. Both earn "Strong Buy" and "Strong 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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GATX Corporation

INDUSTRIALS · RENTAL & LEASING SERVICES · USA

GATX Corporation (NYSE: GATX) strives to be recognized as the best car rental company in the world by our customers, our shareholders, our employees and the communities where we operate. The company is headquartered in Chicago, Illinois since its founding in 1898.

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