Caterpillar Inc (CAT)vsWatts Water Technologies Inc (WTS)
CAT
Caterpillar Inc
$890.11
+9.88%
INDUSTRIALS · Cap: $414.16B
WTS
Watts Water Technologies Inc
$300.16
+0.97%
INDUSTRIALS · Cap: $9.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 2672% more annual revenue ($67.59B vs $2.44B). WTS leads profitability with a 14.0% profit margin vs 13.1%. CAT appears more attractively valued with a PEG of 2.17. WTS earns a higher WallStSmart Score of 58/100 (C).
CAT
Buy55
out of 100
Grade: C-
WTS
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
-44.7%
Fair Value
$217.51
Current Price
$300.16
$82.65 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
Safe zone — low bankruptcy risk
15.7% revenue growth
Earnings expanding 23.8% YoY
Areas to Watch
Expensive relative to growth rate
Trading at 19.4x book value
Weak financial health signals
Premium valuation, high expectations priced in
Moderate valuation
Expensive relative to growth rate
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 : WTS
The strongest argument for WTS centers on Altman Z-Score, Revenue Growth, EPS Growth. Revenue growth of 15.7% demonstrates continued momentum.
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 : WTS
The primary concerns for WTS are P/E Ratio, PEG Ratio.
Key Dynamics to Monitor
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.
Monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WTS scores higher overall (58/100 vs 55/100) and 15.7% revenue growth. 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 →Watts Water Technologies Inc
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Watts Water Technologies, Inc. designs, manufactures and sells products and systems that manage and conserve the flow of fluids and energy to, through and from buildings in the commercial and residential markets of the Americas, Europe, Asia-Pacific, the Middle East and Africa. . The company is headquartered in North Andover, Massachusetts.
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