Caterpillar Inc (CAT)vsLegence Corp. Class A Common stock (LGN)
CAT
Caterpillar Inc
$890.11
+9.88%
INDUSTRIALS · Cap: $414.16B
LGN
Legence Corp. Class A Common stock
$80.74
+0.20%
INDUSTRIALS · Cap: $13.26B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 2550% more annual revenue ($67.59B vs $2.55B). CAT leads profitability with a 13.1% profit margin vs -2.3%. CAT earns a higher WallStSmart Score of 55/100 (C-).
CAT
Buy55
out of 100
Grade: C-
LGN
Avoid35
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
+34.0%
Fair Value
$81.29
Current Price
$80.74
$0.55 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
18.0% revenue growth
Generating 2.2B in free cash flow
Revenue surging 34.6% year-over-year
Areas to Watch
Expensive relative to growth rate
Trading at 19.4x book value
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 13.1x book value
0.0% earnings growth
Operating margin of 1.2%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : LGN
The strongest argument for LGN centers on Revenue Growth. Revenue growth of 34.6% 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 : LGN
The primary concerns for LGN are Price/Book, EPS Growth, Operating Margin.
Key Dynamics to Monitor
CAT profiles as a growth stock while LGN is a hypergrowth play — different risk/reward profiles.
LGN is growing revenue faster at 34.6% — 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
CAT scores higher overall (55/100 vs 35/100) and 18.0% revenue growth. LGN offers better value entry with a 34.0% margin of safety. Both earn "Buy" and "Avoid" 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 →Legence Corp. Class A Common stock
INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA
Legence Corp. The company is headquartered in San Jose, California.
Compare with Other FARM & HEAVY CONSTRUCTION MACHINERY Stocks
Want to dig deeper into these stocks?