WallStSmart

Allegiant Travel Company (ALGT)vsCaterpillar Inc (CAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 2580% more annual revenue ($70.75B vs $2.64B). CAT leads profitability with a 13.3% profit margin vs -1.3%. ALGT appears more attractively valued with a PEG of 0.85. CAT earns a higher WallStSmart Score of 67/100 (B-).

ALGT

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 3.5Value: 7.0Quality: 4.0
Piotroski: 4/9Altman Z: 1.18

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

ALGTUndervalued (+16.9%)

Margin of Safety

+16.9%

Fair Value

$131.53

Current Price

$95.69

$35.84 discount

UndervaluedFair: $131.53Overvalued

Intrinsic value data unavailable for CAT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ALGT3 strengths · Avg: 8.0/10
PEG RatioValuation
0.858/10

Growing faster than its price suggests

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
32.6%8/10

Earnings expanding 32.6% YoY

CAT5 strengths · Avg: 8.8/10
Market CapQuality
$409.91B10/10

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

ALGT4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.8%4/10

4.8% revenue growth

Debt/EquityHealth
1.693/10

Elevated debt levels

Return on EquityProfitability
-3.1%2/10

ROE of -3.1% — below average capital efficiency

Altman Z-ScoreHealth
1.182/10

Distress zone — elevated risk

CAT4 concerns · Avg: 3.3/10
PEG RatioValuation
2.094/10

Expensive relative to growth rate

Price/BookValuation
20.0x4/10

Trading at 20.0x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
43.1x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : ALGT

The strongest argument for ALGT centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.85 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 22.2% demonstrates continued momentum.

Bear Case : ALGT

The primary concerns for ALGT are Revenue Growth, Debt/Equity, Return on Equity. Debt-to-equity of 1.69 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

ALGT profiles as a turnaround 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 56/100) and 22.2% revenue growth. ALGT offers better value entry with a 16.9% margin of safety. 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.

Allegiant Travel Company

INDUSTRIALS · AIRLINES · USA

Allegiant Travel Company, a leisure travel company, provides travel products and services to residents of underserved cities in the United States. The company is headquartered in Las Vegas, Nevada.

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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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