WallStSmart

Caterpillar Inc (CAT)vsL3Harris Technologies Inc (LHX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 450% more annual revenue ($70.75B vs $12.86B). CAT leads profitability with a 13.3% profit margin vs 10.4%. LHX appears more attractively valued with a PEG of 1.75. CAT earns a higher WallStSmart Score of 67/100 (B-).

CAT

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 4.3Quality: 4.5
Piotroski: 3/9Altman Z: 2.40

LHX

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 6.0Value: 4.3Quality: 6.5
Piotroski: 6/9Altman Z: 1.46

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT5 strengths · Avg: 8.8/10
Market CapQuality
$419.05B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
50.5%10/10

Every $100 of equity generates 50 in profit

Revenue GrowthGrowth
22.2%8/10

Revenue surging 22.2% year-over-year

EPS GrowthGrowth
30.2%8/10

Earnings expanding 30.2% YoY

Free Cash FlowQuality
$1.55B8/10

Generating 1.5B in free cash flow

LHX4 strengths · Avg: 9.0/10
Revenue GrowthGrowth
190.0%10/10

Revenue surging 190.0% year-over-year

Market CapQuality
$57.40B9/10

Large-cap with strong market position

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

Areas to Watch

CAT4 concerns · Avg: 2.8/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
45.2x2/10

Premium valuation, high expectations priced in

Price/BookValuation
22.3x2/10

Trading at 22.3x book value

LHX4 concerns · Avg: 3.0/10
PEG RatioValuation
1.754/10

Expensive relative to growth rate

P/E RatioValuation
33.5x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-6.1%2/10

Earnings declined 6.1%

Free Cash FlowQuality
$-194.00M2/10

Negative free cash flow — burning cash

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 22.2% demonstrates continued momentum.

Bull Case : LHX

The strongest argument for LHX centers on Revenue Growth, Market Cap, Debt/Equity. Revenue growth of 190.0% demonstrates continued momentum.

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 : LHX

The primary concerns for LHX are PEG Ratio, P/E Ratio, EPS Growth.

Key Dynamics to Monitor

CAT carries more volatility with a beta of 1.63 — expect wider price swings.

LHX is growing revenue faster at 190.0% — 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

CAT scores higher overall (67/100 vs 54/100) and 22.2% 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.

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L3Harris Technologies Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

L3Harris Technologies (L3Harris) is an American technology company, defense contractor and information technology services provider that produces C6ISR systems and products, wireless equipment, tactical radios, avionics and electronic systems, night vision equipment, and both terrestrial and spaceborne antennas for use in the government, defense, and commercial sectors.

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