WallStSmart

Caterpillar Inc (CAT)vsQuanex Building Products (NX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 3711% more annual revenue ($70.75B vs $1.86B). CAT leads profitability with a 13.3% profit margin vs -13.9%. NX appears more attractively valued with a PEG of 0.70. 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

NX

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 3.5Value: 6.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.27

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT5 strengths · Avg: 8.8/10
Market CapQuality
$419.40B10/10

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

NX2 strengths · Avg: 9.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

PEG RatioValuation
0.708/10

Growing faster than its price suggests

Areas to Watch

CAT4 concerns · Avg: 2.8/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
45.3x2/10

Premium valuation, high expectations priced in

Price/BookValuation
22.3x2/10

Trading at 22.3x book value

NX4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.2%4/10

2.2% revenue growth

Market CapQuality
$764.70M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Debt/EquityHealth
1.223/10

Elevated debt levels

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 : NX

The strongest argument for NX centers on Price/Book, PEG Ratio. PEG of 0.70 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 45.3x leaves little room for execution misses. Debt-to-equity of 2.31 is elevated, increasing financial risk.

Bear Case : NX

The primary concerns for NX are Revenue Growth, Market Cap, Operating Margin.

Key Dynamics to Monitor

CAT profiles as a growth stock while NX is a turnaround play — different risk/reward profiles.

CAT carries more volatility with a beta of 1.60 — 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.

Bottom Line

CAT scores higher overall (67/100 vs 47/100) and 22.2% revenue growth. Both earn "Strong Buy" and "Hold" 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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Quanex Building Products

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

Quanex Building Products Corporation (NX) is a leading manufacturer specializing in engineered materials and components tailored for the building and construction industry, with a strong emphasis on quality and sustainability. The company offers a wide range of products, including energy-efficient window and door systems and advanced engineered wood solutions, catering to both residential and commercial markets. Leveraging proprietary technologies and a commitment to operational excellence, Quanex effectively positions itself as a key player in the evolving landscape of sustainable construction, delivering value and innovation amidst increasing demand for eco-friendly building solutions.

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