WallStSmart

Brookfield Business Corp (BBUC)vsCaterpillar Inc (CAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 161% more annual revenue ($70.75B vs $27.14B). CAT leads profitability with a 13.3% profit margin vs -0.2%. CAT earns a higher WallStSmart Score of 67/100 (B-).

BBUC

Hold

42

out of 100

Grade: D

Growth: 4.7Profit: 4.5Value: 5.0Quality: 6.0
Piotroski: 5/9Altman Z: 2.31

CAT

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 4.3Quality: 4.5
Piotroski: 3/9Altman Z: 2.40

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BBUC1 strengths · Avg: 10.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

CAT5 strengths · Avg: 8.8/10
Market CapQuality
$419.05B10/10

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

BBUC4 concerns · Avg: 1.8/10
Return on EquityProfitability
-11.1%2/10

ROE of -11.1% — below average capital efficiency

Revenue GrowthGrowth
-4.6%2/10

Revenue declined 4.6%

EPS GrowthGrowth
-48.6%2/10

Earnings declined 48.6%

Profit MarginProfitability
-0.2%1/10

Currently unprofitable

CAT4 concerns · Avg: 2.8/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
45.2x2/10

Premium valuation, high expectations priced in

Price/BookValuation
22.3x2/10

Trading at 22.3x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : BBUC

The strongest argument for BBUC centers on 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 : BBUC

The primary concerns for BBUC are Return on Equity, Revenue Growth, EPS Growth. Debt-to-equity of 8.32 is elevated, increasing financial risk.

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

BBUC 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 42/100) and 22.2% revenue growth. Both earn "Strong Buy" and "Hold" 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 Corp

INDUSTRIALS · CONGLOMERATES · USA

Brookfield Business Corporation focuses on healthcare, construction and wastewater services in the United States, Europe, Australia, the United Kingdom, Canada and Brazil. The company is headquartered in New York, New York.

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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