Caterpillar Inc (CAT)vsKennametal Inc (KMT)
CAT
Caterpillar Inc
$904.28
+1.44%
INDUSTRIALS · Cap: $419.05B
KMT
Kennametal Inc
$32.63
-0.82%
INDUSTRIALS · Cap: $2.50B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 3212% more annual revenue ($70.75B vs $2.14B). CAT leads profitability with a 13.3% profit margin vs 6.4%. KMT appears more attractively valued with a PEG of 1.25. KMT earns a higher WallStSmart Score of 72/100 (B).
CAT
Strong Buy67
out of 100
Grade: B-
KMT
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
-35.3%
Fair Value
$29.75
Current Price
$32.63
$2.88 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
Earnings expanding 83.5% YoY
Reasonable price relative to book value
Revenue surging 21.8% year-over-year
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 22.3x book value
6.4% margin — thin
Weak financial health signals
Negative free cash flow — burning cash
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 : KMT
The strongest argument for KMT centers on EPS Growth, Price/Book, Revenue Growth. Revenue growth of 21.8% demonstrates continued momentum. PEG of 1.25 suggests the stock is reasonably priced for its growth.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 45.2x leaves little room for execution misses. Debt-to-equity of 2.31 is elevated, increasing financial risk.
Bear Case : KMT
The primary concerns for KMT are Profit Margin, Piotroski F-Score, Free Cash Flow.
Key Dynamics to Monitor
CAT carries more volatility with a beta of 1.63 — 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.
Monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KMT scores higher overall (72/100 vs 67/100) and 21.8% 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 →Kennametal Inc
INDUSTRIALS · TOOLS & ACCESSORIES · USA
Kennametal Inc. develops and applies tungsten carbides, ceramics and super hard materials and solutions for use in extreme wear and metal cutting applications to enable customers to work against corrosion and high temperature conditions around the world. The company is headquartered in Pittsburgh, Pennsylvania.
Visit Website →Compare with Other FARM & HEAVY CONSTRUCTION MACHINERY Stocks
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