Alamo Group Inc (ALG)vsCaterpillar Inc (CAT)
ALG
Alamo Group Inc
$167.40
+4.76%
INDUSTRIALS · Cap: $1.94B
CAT
Caterpillar Inc
$680.88
+3.06%
INDUSTRIALS · Cap: $318.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 4115% more annual revenue ($67.59B vs $1.60B). CAT leads profitability with a 13.1% profit margin vs 6.5%. ALG appears more attractively valued with a PEG of 0.97. CAT earns a higher WallStSmart Score of 57/100 (C).
ALG
Buy50
out of 100
Grade: C-
CAT
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-259.5%
Fair Value
$58.48
Current Price
$167.40
$108.92 premium
Margin of Safety
-432.9%
Fair Value
$127.77
Current Price
$680.88
$553.11 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Reasonable price relative to book value
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
Areas to Watch
Smaller company, higher risk/reward
6.5% margin — thin
Weak financial health signals
Revenue declined 3.0%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 14.9x book value
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ALG
The strongest argument for ALG centers on Altman Z-Score, Debt/Equity, PEG Ratio. PEG of 0.97 suggests the stock is reasonably priced for its growth.
Bull Case : CAT
The strongest argument for CAT centers on Market Cap, Return on Equity, Revenue Growth. Revenue growth of 18.0% demonstrates continued momentum.
Bear Case : ALG
The primary concerns for ALG are Market Cap, Profit Margin, Piotroski F-Score.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.03 is elevated, increasing financial risk.
Key Dynamics to Monitor
ALG profiles as a value stock while CAT is a growth play — different risk/reward profiles.
CAT carries more volatility with a beta of 1.53 — 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.
Bottom Line
CAT scores higher overall (57/100 vs 50/100) and 18.0% 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.
Alamo Group Inc
INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA
Alamo Group Inc. designs, manufactures, distributes and services agricultural and infrastructure maintenance equipment for government and industrial use worldwide. The company is headquartered in Seguin, Texas.
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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