BHP Group Limited (BHP)vsCaterpillar Inc (CAT)
BHP
BHP Group Limited
$84.72
+2.63%
BASIC MATERIALS · Cap: $214.23B
CAT
Caterpillar Inc
$897.45
+0.20%
INDUSTRIALS · Cap: $412.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 31% more annual revenue ($70.75B vs $53.99B). BHP leads profitability with a 19.0% profit margin vs 13.3%. CAT appears more attractively valued with a PEG of 2.22. CAT earns a higher WallStSmart Score of 67/100 (B-).
BHP
Buy65
out of 100
Grade: C+
CAT
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-83.1%
Fair Value
$43.51
Current Price
$84.72
$41.21 premium
Intrinsic value data unavailable for CAT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Strong operational efficiency at 40.7%
Every $100 of equity generates 25 in profit
Earnings expanding 27.5% YoY
Generating 4.3B in free cash flow
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
Expensive relative to growth rate
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 : BHP
The strongest argument for BHP centers on Market Cap, Operating Margin, Return on Equity. Profitability is solid with margins at 19.0% and operating margin at 40.7%. Revenue growth of 10.8% demonstrates continued momentum.
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 : BHP
The primary concerns for BHP are PEG Ratio.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 44.6x leaves little room for execution misses. Debt-to-equity of 2.03 is elevated, increasing financial risk.
Key Dynamics to Monitor
BHP profiles as a mature 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.
BHP generates stronger free cash flow (4.3B), providing more financial flexibility.
Bottom Line
CAT scores higher overall (67/100 vs 65/100) 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.
BHP Group Limited
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
BHP Group engages in the natural resources business in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America and internationally. The company is headquartered in Melbourne, Australia.
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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