WallStSmart

Caterpillar Inc (CAT)vsGeo Group Inc (GEO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 2468% more annual revenue ($67.59B vs $2.63B). CAT leads profitability with a 13.1% profit margin vs 9.7%. GEO appears more attractively valued with a PEG of 1.02. GEO earns a higher WallStSmart Score of 74/100 (B).

CAT

Buy

55

out of 100

Grade: C-

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

GEO

Strong Buy

74

out of 100

Grade: B

Growth: 7.3Profit: 6.5Value: 8.7Quality: 5.8
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAT.

GEOUndervalued (+70.9%)

Margin of Safety

+70.9%

Fair Value

$54.42

Current Price

$18.51

$35.91 discount

UndervaluedFair: $54.42Overvalued

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

GEO4 strengths · Avg: 9.0/10
P/E RatioValuation
10.4x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
117.7%10/10

Earnings expanding 117.7% YoY

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.5%8/10

16.5% revenue growth

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

GEO2 concerns · Avg: 2.5/10
Debt/EquityHealth
1.153/10

Elevated debt levels

Free Cash FlowQuality
$-153.56M2/10

Negative free cash flow — burning cash

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 : GEO

The strongest argument for GEO centers on P/E Ratio, EPS Growth, Price/Book. Revenue growth of 16.5% demonstrates continued momentum. PEG of 1.02 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 : GEO

The primary concerns for GEO are Debt/Equity, Free Cash Flow.

Key Dynamics to Monitor

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.

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

Bottom Line

GEO scores higher overall (74/100 vs 55/100) and 16.5% 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.

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Geo Group Inc

INDUSTRIALS · SECURITY & PROTECTION SERVICES · USA

The GEO Group (NYSE: GEO) is the first fully integrated capital real estate investment trust specializing in the design, financing, development and operation of secure facilities, processing centers and community re-entry centers in the United States, Australia, South Africa, and the United Kingdom.

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