ADT Inc (ADT)vsCaterpillar Inc (CAT)
ADT
ADT Inc
$7.51
+1.35%
INDUSTRIALS · Cap: $5.13B
CAT
Caterpillar Inc
$808.91
+3.38%
INDUSTRIALS · Cap: $409.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 1277% more annual revenue ($70.75B vs $5.14B). CAT leads profitability with a 13.3% profit margin vs 12.1%. ADT trades at a lower P/E of 9.2x. CAT earns a higher WallStSmart Score of 67/100 (B-).
ADT
Strong Buy66
out of 100
Grade: B-
CAT
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-34.4%
Fair Value
$5.81
Current Price
$7.51
$1.70 premium
Intrinsic value data unavailable for CAT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 25.5%
Earnings expanding 26.4% YoY
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
0.9% revenue growth
Distress zone — elevated risk
Elevated debt levels
Expensive relative to growth rate
Trading at 20.0x book value
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : ADT
The strongest argument for ADT centers on P/E Ratio, Price/Book, Operating Margin.
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 : ADT
The primary concerns for ADT are Revenue Growth, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.02 is elevated, increasing financial risk.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 43.1x leaves little room for execution misses. Debt-to-equity of 2.31 is elevated, increasing financial risk.
Key Dynamics to Monitor
ADT profiles as a value stock while CAT is a growth play — different risk/reward profiles.
CAT carries more volatility with a beta of 1.56 — 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 66/100) and 22.2% 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.
ADT Inc
INDUSTRIALS · SECURITY & PROTECTION SERVICES · USA
ADT Inc. provides security, automation and smart home solutions to consumers and business customers in the United States. The company is headquartered in Boca Raton, Florida.
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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