Brookfield Business Partners LP (BBU)vsCaterpillar Inc (CAT)
BBU
Brookfield Business Partners LP
$31.46
0.00%
INDUSTRIALS · Cap: $2.79B
CAT
Caterpillar Inc
$874.78
+3.41%
INDUSTRIALS · Cap: $402.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 158% more annual revenue ($70.75B vs $27.46B). CAT leads profitability with a 13.3% profit margin vs -0.1%. CAT earns a higher WallStSmart Score of 67/100 (B-).
BBU
Buy52
out of 100
Grade: C-
CAT
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+85.6%
Fair Value
$251.77
Current Price
$31.46
$220.31 discount
Intrinsic value data unavailable for CAT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 80.0% YoY
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 51 in profit
Revenue surging 22.2% year-over-year
Earnings expanding 30.2% YoY
Generating 1.5B in free cash flow
Areas to Watch
ROE of 2.4% — below average capital efficiency
Weak financial health signals
Revenue declined 4.5%
Currently unprofitable
Expensive relative to growth rate
Trading at 19.1x book value
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : BBU
The strongest argument for BBU centers on EPS Growth, Price/Book.
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 : BBU
The primary concerns for BBU are Return on Equity, Piotroski F-Score, Revenue Growth. Debt-to-equity of 19.07 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 43.5x leaves little room for execution misses. Debt-to-equity of 2.03 is elevated, increasing financial risk.
Key Dynamics to Monitor
BBU 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 52/100) and 22.2% revenue growth. BBU offers better value entry with a 85.6% 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.
Brookfield Business Partners LP
INDUSTRIALS · CONGLOMERATES · USA
Brookfield Business Partners LP (BBU) is a leading global alternative asset manager that focuses on acquiring, operating, and enhancing a diversified portfolio of high-quality, cash-generating businesses. Capitalizing on the robust resources and expertise of its parent company, Brookfield Asset Management, BBU strategically invests in sectors such as industrials, utilities, and consumer products, employing a disciplined approach to operational improvements. With an emphasis on delivering sustainable cash distributions and capital appreciation, BBU is well-equipped to capitalize on growth opportunities, positioning itself to generate superior returns for its investors over the long term.
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 CONGLOMERATES Stocks
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