Caterpillar Inc (CAT)vsJacobs Solutions Inc. (J)
CAT
Caterpillar Inc
$558.71
+0.90%
INDUSTRIALS · Cap: $286.26B
J
Jacobs Solutions Inc.
$147.54
-7.85%
INDUSTRIALS · Cap: $17.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 447% more annual revenue ($77.77B vs $14.22B). CAT leads profitability with a 15.2% profit margin vs 2.4%. J appears more attractively valued with a PEG of 0.45. CAT earns a higher WallStSmart Score of 75/100 (B+).
CAT
Strong Buy75
out of 100
Grade: B+
J
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
-80.1%
Fair Value
$79.06
Current Price
$147.54
$68.48 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 56 in profit
Strong operational efficiency at 20.5%
17.3% revenue growth
Earnings expanding 46.1% YoY
Generating 3.3B in free cash flow
Growing faster than its price suggests
Revenue surging 34.5% year-over-year
Areas to Watch
Trading at 11.9x book value
Weak financial health signals
Elevated debt levels
Grey zone — moderate risk
2.4% margin — thin
Elevated debt levels
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : CAT
The strongest argument for CAT centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 15.2% and operating margin at 20.5%. Revenue growth of 17.3% demonstrates continued momentum.
Bull Case : J
The strongest argument for J centers on PEG Ratio, Revenue Growth. Revenue growth of 34.5% demonstrates continued momentum. PEG of 0.45 suggests the stock is reasonably priced for its growth.
Bear Case : CAT
The primary concerns for CAT are Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.33 is elevated, increasing financial risk.
Bear Case : J
The primary concerns for J are Altman Z-Score, Profit Margin, Debt/Equity. A P/E of 50.1x leaves little room for execution misses. Thin 2.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
CAT profiles as a growth stock while J is a hypergrowth play — different risk/reward profiles.
CAT carries more volatility with a beta of 1.58 — expect wider price swings.
J is growing revenue faster at 34.5% — sustainability is the question.
CAT generates stronger free cash flow (3.3B), providing more financial flexibility.
Bottom Line
CAT scores higher overall (75/100 vs 54/100), backed by strong 15.2% margins and 17.3% 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.
Visit Website →Jacobs Solutions Inc.
INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA
Jacobs Engineering Group Inc. (NYSE: J) is an American international technical professional services firm. The company provides technical, professional and construction services, as well as scientific and specialty consulting for a broad range of clients globally, including companies, organizations, and government agencies.
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