Caterpillar Inc (CAT)vsLennox International Inc (LII)
CAT
Caterpillar Inc
$810.05
+9.88%
INDUSTRIALS · Cap: $414.16B
LII
Lennox International Inc
$517.62
+4.46%
INDUSTRIALS · Cap: $18.02B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 1201% more annual revenue ($67.59B vs $5.20B). LII leads profitability with a 15.5% profit margin vs 13.1%. LII appears more attractively valued with a PEG of 1.42. LII earns a higher WallStSmart Score of 56/100 (C).
CAT
Buy55
out of 100
Grade: C-
LII
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
-52.5%
Fair Value
$365.66
Current Price
$517.62
$151.96 premium
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
Every $100 of equity generates 76 in profit
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Trading at 17.7x book value
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 15.5x book value
Weak financial health signals
Revenue declined 11.2%
Earnings declined 17.9%
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 : LII
The strongest argument for LII centers on Return on Equity, Altman Z-Score. Profitability is solid with margins at 15.5% and operating margin at 19.8%. PEG of 1.42 suggests the stock is reasonably priced for its growth.
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 : LII
The primary concerns for LII are Price/Book, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
CAT profiles as a growth stock while LII is a declining play — different risk/reward profiles.
CAT carries more volatility with a beta of 1.52 — expect wider price swings.
CAT is growing revenue faster at 18.0% — sustainability is the question.
CAT generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
LII scores higher overall (56/100 vs 55/100), backed by strong 15.5% margins. Both earn "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 →Lennox International Inc
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Lennox International Inc. designs, manufactures and markets a range of products for the heating, ventilation, air conditioning and refrigeration markets in the United States, Canada and internationally. The company is headquartered in Richardson, Texas.
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