Caterpillar Inc (CAT)vsHoneywell International Inc (HON)
CAT
Caterpillar Inc
$842.19
-1.72%
INDUSTRIALS · Cap: $382.31B
HON
Honeywell International Inc
$246.21
+2.27%
INDUSTRIALS · Cap: $78.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 86% more annual revenue ($70.75B vs $38.06B). HON leads profitability with a 21.6% profit margin vs 13.3%. CAT appears more attractively valued with a PEG of 1.91. HON earns a higher WallStSmart Score of 69/100 (B-).
CAT
Strong Buy69
out of 100
Grade: B-
HON
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
-28.5%
Fair Value
$189.60
Current Price
$246.21
$56.61 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 50 in profit
Revenue surging 22.2% year-over-year
Earnings expanding 30.2% YoY
Generating 1.5B in free cash flow
Attractively priced relative to earnings
Every $100 of equity generates 33 in profit
Earnings expanding 263.9% YoY
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 20.3%
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 20.8x book value
4.3% revenue growth
Elevated debt levels
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 22.2% demonstrates continued momentum.
Bull Case : HON
The strongest argument for HON centers on P/E Ratio, Return on Equity, EPS Growth. Profitability is solid with margins at 21.6% and operating margin at 20.3%.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 42.9x leaves little room for execution misses. Debt-to-equity of 2.31 is elevated, increasing financial risk.
Bear Case : HON
The primary concerns for HON are Revenue Growth, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
CAT profiles as a growth stock while HON is a value play — different risk/reward profiles.
CAT carries more volatility with a beta of 1.60 — expect wider price swings.
CAT is growing revenue faster at 22.2% — sustainability is the question.
CAT generates stronger free cash flow (1.5B), providing more financial flexibility.
Bottom Line
CAT scores higher overall (69/100 vs 69/100) and 22.2% 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.
Visit Website →Honeywell International Inc
INDUSTRIALS · CONGLOMERATES · USA
Honeywell International Inc. is an American publicly traded, multinational conglomerate headquartered in Charlotte, North Carolina. It primarily operates in four areas of business: aerospace, building technologies, performance materials and technologies (PMT), and safety and productivity solutions (SPS).
Compare with Other FARM & HEAVY CONSTRUCTION MACHINERY Stocks
Want to dig deeper into these stocks?