WallStSmart

Caterpillar Inc (CAT)vsGranite Construction Incorporated (GVA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 1428% more annual revenue ($67.59B vs $4.42B). CAT leads profitability with a 13.1% profit margin vs 4.4%. GVA appears more attractively valued with a PEG of 1.96. GVA earns a higher WallStSmart Score of 58/100 (C).

CAT

Buy

55

out of 100

Grade: C-

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

GVA

Buy

58

out of 100

Grade: C

Growth: 8.0Profit: 5.5Value: 3.3Quality: 6.3
Piotroski: 6/9Altman Z: 2.63
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAT.

GVASignificantly Overvalued (-31.7%)

Margin of Safety

-31.7%

Fair Value

$101.15

Current Price

$122.55

$21.40 premium

UndervaluedFair: $101.15Overvalued

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

GVA2 strengths · Avg: 8.0/10
Revenue GrowthGrowth
19.2%8/10

19.2% revenue growth

EPS GrowthGrowth
25.1%8/10

Earnings expanding 25.1% YoY

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

GVA4 concerns · Avg: 3.5/10
PEG RatioValuation
1.964/10

Expensive relative to growth rate

P/E RatioValuation
31.8x4/10

Premium valuation, high expectations priced in

Profit MarginProfitability
4.4%3/10

4.4% margin — thin

Operating MarginProfitability
3.4%3/10

Operating margin of 3.4%

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 : GVA

The strongest argument for GVA centers on Revenue Growth, EPS Growth. Revenue growth of 19.2% demonstrates continued momentum.

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 : GVA

The primary concerns for GVA are PEG Ratio, P/E Ratio, Profit Margin. Thin 4.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

GVA is growing revenue faster at 19.2% — 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

GVA scores higher overall (58/100 vs 55/100) and 19.2% 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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Granite Construction Incorporated

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

Granite Construction Incorporated is an infrastructure contractor and producer of building materials in the United States. The company is headquartered in Watsonville, California.

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