Smith AO Corporation (AOS)vsCaterpillar Inc (CAT)
AOS
Smith AO Corporation
$57.20
+0.33%
INDUSTRIALS · Cap: $8.14B
CAT
Caterpillar Inc
$904.28
+1.44%
INDUSTRIALS · Cap: $419.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 1756% more annual revenue ($70.75B vs $3.81B). AOS leads profitability with a 13.8% profit margin vs 13.3%. AOS appears more attractively valued with a PEG of 1.55. CAT earns a higher WallStSmart Score of 67/100 (B-).
AOS
Buy53
out of 100
Grade: C-
CAT
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-2.8%
Fair Value
$78.07
Current Price
$57.20
$20.87 premium
Intrinsic value data unavailable for CAT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Every $100 of equity generates 28 in profit
Attractively priced relative to earnings
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
Revenue declined 1.9%
Earnings declined 10.5%
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 : AOS
The strongest argument for AOS centers on Altman Z-Score, Return on Equity, P/E Ratio.
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 : AOS
The primary concerns for AOS are PEG Ratio, Revenue Growth, EPS Growth.
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
AOS profiles as a declining 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 53/100) 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.
Smith AO Corporation
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
A. O. Smith Corporation is an American manufacturer of both residential and commercial water heaters and boilers and the largest manufacturer and marketer of water heaters in North America. It also supplies water treatment products in the Asian market.
Visit Website →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 SPECIALTY INDUSTRIAL MACHINERY Stocks
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