Caterpillar Inc (CAT)vsAdvanced Drainage Systems Inc (WMS)
CAT
Caterpillar Inc
$591.11
-5.23%
INDUSTRIALS · Cap: $286.26B
WMS
Advanced Drainage Systems Inc
$144.07
+5.93%
INDUSTRIALS · Cap: $9.81B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 2314% more annual revenue ($77.77B vs $3.22B). CAT leads profitability with a 15.2% profit margin vs 14.0%. CAT appears more attractively valued with a PEG of 1.08. CAT earns a higher WallStSmart Score of 75/100 (B+).
CAT
Strong Buy75
out of 100
Grade: B+
WMS
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
-68.1%
Fair Value
$103.07
Current Price
$144.07
$41.00 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 56 in profit
Strong operational efficiency at 20.5%
17.3% revenue growth
Earnings expanding 46.1% YoY
Generating 3.3B in free cash flow
Every $100 of equity generates 22 in profit
Strong operational efficiency at 26.3%
Revenue surging 20.6% year-over-year
Areas to Watch
Trading at 12.6x book value
Weak financial health signals
Elevated debt levels
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : WMS
The strongest argument for WMS centers on Return on Equity, Operating Margin, Revenue Growth. Revenue growth of 20.6% demonstrates continued momentum. PEG of 1.24 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 : WMS
The primary concerns for WMS are Piotroski F-Score.
Key Dynamics to Monitor
CAT carries more volatility with a beta of 1.58 — expect wider price swings.
WMS is growing revenue faster at 20.6% — 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 69/100), 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.
Visit Website →Advanced Drainage Systems Inc
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Advanced Drainage Systems, Inc. designs, manufactures and markets thermoplastic corrugated pipe and related water management products and drainage solutions for use in the underground construction and infrastructure market in the United States, Canada, Mexico and internationally. The company is headquartered in Hilliard, Ohio.
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