Acacia Research Corporation (ACTG)vsCaterpillar Inc (CAT)
ACTG
Acacia Research Corporation
$4.62
-1.70%
INDUSTRIALS · Cap: $447.21M
CAT
Caterpillar Inc
$904.28
+2.62%
INDUSTRIALS · Cap: $419.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 32802% more annual revenue ($70.75B vs $215.05M). CAT leads profitability with a 13.3% profit margin vs -8.5%. CAT appears more attractively valued with a PEG of 2.06. CAT earns a higher WallStSmart Score of 67/100 (B-).
ACTG
Hold35
out of 100
Grade: F
CAT
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+85.0%
Fair Value
$27.01
Current Price
$4.62
$22.39 discount
Intrinsic value data unavailable for CAT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Every $100 of equity generates 50 in profit
Revenue surging 22.2% year-over-year
Earnings expanding 30.2% YoY
Generating 1.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of -3.5% — below average capital efficiency
Revenue declined 56.4%
Expensive relative to growth rate
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 22.3x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ACTG
The strongest argument for ACTG centers on Price/Book, Debt/Equity.
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 : ACTG
The primary concerns for ACTG are PEG Ratio, Market Cap, Return on Equity.
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
ACTG profiles as a turnaround 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.
CAT is growing revenue faster at 22.2% — 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 35/100) and 22.2% revenue growth. ACTG offers better value entry with a 85.0% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Acacia Research Corporation
INDUSTRIALS · BUSINESS EQUIPMENT & SUPPLIES · USA
Acacia Research Corporation intends to acquire undervalued businesses primarily in the technology, life sciences, industry and financial services segments in the United States. The company is headquartered in New York, New York.
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 →Compare with Other BUSINESS EQUIPMENT & SUPPLIES Stocks
Want to dig deeper into these stocks?