Caterpillar Inc (CAT)vsGeneral Dynamics Corporation (GD)
CAT
Caterpillar Inc
$719.04
+0.34%
INDUSTRIALS · Cap: $335.37B
GD
General Dynamics Corporation
$352.50
+1.81%
INDUSTRIALS · Cap: $95.31B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 29% more annual revenue ($67.59B vs $52.55B). CAT leads profitability with a 13.1% profit margin vs 8.0%. CAT appears more attractively valued with a PEG of 1.86. CAT earns a higher WallStSmart Score of 57/100 (C).
CAT
Buy57
out of 100
Grade: C
GD
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-463.1%
Fair Value
$127.70
Current Price
$719.04
$591.34 premium
Margin of Safety
-212.4%
Fair Value
$114.87
Current Price
$352.50
$237.63 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
18.0% revenue growth
Generating 2.2B in free cash flow
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 15.7x book value
Weak financial health signals
0.4% earnings growth
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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 : GD
The strongest argument for GD centers on Market Cap.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.03 is elevated, increasing financial risk.
Bear Case : GD
The primary concerns for GD are EPS Growth, PEG Ratio.
Key Dynamics to Monitor
CAT profiles as a growth stock while GD is a value play — different risk/reward profiles.
CAT carries more volatility with a beta of 1.53 — 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
CAT scores higher overall (57/100 vs 54/100) and 18.0% 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.
Visit Website →General Dynamics Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
General Dynamics Corporation (GD) is an American aerospace and defense corporation. It is headquartered in Reston, Fairfax County, Virginia.
Visit Website →Compare with Other FARM & HEAVY CONSTRUCTION MACHINERY Stocks
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