WallStSmart

Caterpillar Inc (CAT)vsPACCAR Inc (PCAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 138% more annual revenue ($67.59B vs $28.44B). CAT leads profitability with a 13.1% profit margin vs 8.3%. PCAR appears more attractively valued with a PEG of 1.13. CAT earns a higher WallStSmart Score of 57/100 (C).

CAT

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 7.5Value: 7.3Quality: 4.5
Piotroski: 3/9Altman Z: 2.40

PCAR

Hold

46

out of 100

Grade: D+

Growth: 2.0Profit: 6.0Value: 7.3Quality: 4.5
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CATSignificantly Overvalued (-432.9%)

Margin of Safety

-432.9%

Fair Value

$127.77

Current Price

$680.88

$553.11 premium

UndervaluedFair: $127.77Overvalued
PCARSignificantly Overvalued (-327.9%)

Margin of Safety

-327.9%

Fair Value

$30.26

Current Price

$111.26

$81.00 premium

UndervaluedFair: $30.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT4 strengths · Avg: 9.0/10
Market CapQuality
$318.64B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
43.5%10/10

Every $100 of equity generates 44 in profit

Revenue GrowthGrowth
18.0%8/10

18.0% revenue growth

Free Cash FlowQuality
$2.25B8/10

Generating 2.2B in free cash flow

PCAR1 strengths · Avg: 9.0/10
Market CapQuality
$58.51B9/10

Large-cap with strong market position

Areas to Watch

CAT4 concerns · Avg: 3.8/10
PEG RatioValuation
1.864/10

Expensive relative to growth rate

P/E RatioValuation
36.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
14.9x4/10

Trading at 14.9x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PCAR3 concerns · Avg: 2.3/10
Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Revenue GrowthGrowth
-13.7%2/10

Revenue declined 13.7%

EPS GrowthGrowth
-35.9%2/10

Earnings declined 35.9%

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 18.0% demonstrates continued momentum.

Bull Case : PCAR

The strongest argument for PCAR centers on Market Cap. PEG of 1.13 suggests the stock is reasonably priced for its growth.

Bear Case : CAT

The primary concerns for CAT are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.03 is elevated, increasing financial risk.

Bear Case : PCAR

The primary concerns for PCAR are Piotroski F-Score, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

CAT profiles as a growth stock while PCAR is a value play — different risk/reward profiles.

CAT carries more volatility with a beta of 1.53 — 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

CAT scores higher overall (57/100 vs 46/100) and 18.0% revenue growth. Both earn "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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PACCAR Inc

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.

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