WallStSmart

Caterpillar Inc (CAT)vsPACCAR Inc (PCAR)

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Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 167% more annual revenue ($77.77B vs $29.08B). CAT leads profitability with a 15.2% profit margin vs 9.5%. PCAR appears more attractively valued with a PEG of 0.73. CAT earns a higher WallStSmart Score of 75/100 (B+).

CAT

Strong Buy

75

out of 100

Grade: B+

Growth: 7.3Profit: 8.5Value: 5.7Quality: 4.5
Piotroski: 3/9Altman Z: 2.40

PCAR

Strong Buy

71

out of 100

Grade: B

Growth: 6.7Profit: 6.0Value: 6.0Quality: 7.0
Piotroski: 2/9Altman Z: 2.57
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAT.

PCAROvervalued (-13.5%)

Margin of Safety

-13.5%

Fair Value

$89.78

Current Price

$102.03

$12.25 premium

UndervaluedFair: $89.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT6 strengths · Avg: 8.7/10
Market CapQuality
$286.26B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
55.9%10/10

Every $100 of equity generates 56 in profit

Operating MarginProfitability
20.5%8/10

Strong operational efficiency at 20.5%

Revenue GrowthGrowth
17.3%8/10

17.3% revenue growth

EPS GrowthGrowth
46.1%8/10

Earnings expanding 46.1% YoY

Free Cash FlowQuality
$3.26B8/10

Generating 3.3B in free cash flow

PCAR5 strengths · Avg: 8.2/10
Market CapQuality
$53.66B9/10

Large-cap with strong market position

PEG RatioValuation
0.738/10

Growing faster than its price suggests

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
19.0%8/10

19.0% revenue growth

EPS GrowthGrowth
43.6%8/10

Earnings expanding 43.6% YoY

Areas to Watch

CAT3 concerns · Avg: 2.7/10
Price/BookValuation
13.3x4/10

Trading at 13.3x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
2.331/10

Elevated debt levels

PCAR1 concerns · Avg: 3.0/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CAT

The strongest argument for CAT centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 15.2% and operating margin at 20.5%. Revenue growth of 17.3% demonstrates continued momentum.

Bull Case : PCAR

The strongest argument for PCAR centers on Market Cap, PEG Ratio, Price/Book. Revenue growth of 19.0% demonstrates continued momentum. PEG of 0.73 suggests the stock is reasonably priced for its growth.

Bear Case : CAT

The primary concerns for CAT are Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.33 is elevated, increasing financial risk.

Bear Case : PCAR

The primary concerns for PCAR are Piotroski F-Score.

Key Dynamics to Monitor

CAT carries more volatility with a beta of 1.58 — expect wider price swings.

PCAR is growing revenue faster at 19.0% — sustainability is the question.

CAT generates stronger free cash flow (3.3B), providing more financial flexibility.

Monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CAT scores higher overall (75/100 vs 71/100), backed by strong 15.2% margins and 17.3% revenue growth. Both earn "Strong Buy" and "Strong 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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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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