WallStSmart

AAON Inc (AAON)vsCaterpillar Inc (CAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 4276% more annual revenue ($70.75B vs $1.62B). CAT leads profitability with a 13.3% profit margin vs 7.3%. CAT appears more attractively valued with a PEG of 2.06. CAT earns a higher WallStSmart Score of 67/100 (B-).

AAON

Buy

57

out of 100

Grade: C

Growth: 9.3Profit: 5.5Value: 3.3Quality: 7.0
Piotroski: 2/9Altman Z: 2.89

CAT

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 4.3Quality: 4.5
Piotroski: 3/9Altman Z: 2.40
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AAONUndervalued (+10.1%)

Margin of Safety

+10.1%

Fair Value

$114.28

Current Price

$132.62

$18.34 discount

UndervaluedFair: $114.28Overvalued

Intrinsic value data unavailable for CAT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAON2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
54.3%10/10

Revenue surging 54.3% year-over-year

EPS GrowthGrowth
37.1%8/10

Earnings expanding 37.1% YoY

CAT5 strengths · Avg: 8.8/10
Market CapQuality
$419.05B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
50.5%10/10

Every $100 of equity generates 50 in profit

Revenue GrowthGrowth
22.2%8/10

Revenue surging 22.2% year-over-year

EPS GrowthGrowth
30.2%8/10

Earnings expanding 30.2% YoY

Free Cash FlowQuality
$1.55B8/10

Generating 1.5B in free cash flow

Areas to Watch

AAON4 concerns · Avg: 3.0/10
Price/BookValuation
11.6x4/10

Trading at 11.6x book value

Profit MarginProfitability
7.3%3/10

7.3% margin — thin

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.822/10

Expensive relative to growth rate

CAT4 concerns · Avg: 2.8/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
45.2x2/10

Premium valuation, high expectations priced in

Price/BookValuation
22.3x2/10

Trading at 22.3x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : AAON

The strongest argument for AAON centers on Revenue Growth, EPS Growth. Revenue growth of 54.3% demonstrates continued momentum.

Bull Case : CAT

The strongest argument for CAT centers on Market Cap, Return on Equity, Revenue Growth. Revenue growth of 22.2% demonstrates continued momentum.

Bear Case : AAON

The primary concerns for AAON are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 89.6x leaves little room for execution misses.

Bear Case : CAT

The primary concerns for CAT are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 45.2x leaves little room for execution misses. Debt-to-equity of 2.31 is elevated, increasing financial risk.

Key Dynamics to Monitor

AAON profiles as a hypergrowth stock while CAT is a growth play — different risk/reward profiles.

CAT carries more volatility with a beta of 1.63 — expect wider price swings.

AAON is growing revenue faster at 54.3% — sustainability is the question.

CAT generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

CAT scores higher overall (67/100 vs 57/100) and 22.2% revenue growth. Both earn "Strong 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.

AAON Inc

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

AAON, Inc. engages in the engineering, manufacturing, marketing and sales of heating and air conditioning equipment in the United States and Canada. The company is headquartered in Tulsa, Oklahoma.

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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