Caterpillar Inc (CAT)vsWaste Management Inc (WM)
CAT
Caterpillar Inc
$810.05
-0.96%
INDUSTRIALS · Cap: $414.16B
WM
Waste Management Inc
$230.31
+1.30%
INDUSTRIALS · Cap: $93.39B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 166% more annual revenue ($67.59B vs $25.41B). CAT leads profitability with a 13.1% profit margin vs 11.0%. CAT appears more attractively valued with a PEG of 2.17. WM earns a higher WallStSmart Score of 58/100 (C).
CAT
Buy55
out of 100
Grade: C-
WM
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
-80.0%
Fair Value
$130.38
Current Price
$230.31
$99.93 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
Large-cap with strong market position
Every $100 of equity generates 30 in profit
Areas to Watch
Expensive relative to growth rate
Trading at 17.7x book value
Weak financial health signals
Premium valuation, high expectations priced in
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 9.3x book value
3.5% revenue growth
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 : WM
The strongest argument for WM centers on Market Cap, Return on Equity.
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 : WM
The primary concerns for WM are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
CAT profiles as a growth stock while WM is a value 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
WM scores higher overall (58/100 vs 55/100). 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 →Waste Management Inc
INDUSTRIALS · WASTE MANAGEMENT · USA
Waste Management, Inc. is an American waste management, comprehensive waste, and environmental services company in North America. Founded in 1968, the company is headquartered 800 Capitol in Houston, Texas.
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