Builders FirstSource Inc (BLDR)vsCaterpillar Inc (CAT)
BLDR
Builders FirstSource Inc
$66.16
-2.58%
INDUSTRIALS · Cap: $7.82B
CAT
Caterpillar Inc
$808.91
+3.38%
INDUSTRIALS · Cap: $409.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 377% more annual revenue ($70.75B vs $14.82B). CAT leads profitability with a 13.3% profit margin vs 2.0%. BLDR appears more attractively valued with a PEG of 2.02. CAT earns a higher WallStSmart Score of 67/100 (B-).
BLDR
Hold45
out of 100
Grade: D+
CAT
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-34.0%
Fair Value
$54.97
Current Price
$66.16
$11.19 premium
Intrinsic value data unavailable for CAT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
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
Moderate valuation
ROE of 7.3% — below average capital efficiency
2.0% margin — thin
Expensive relative to growth rate
Trading at 20.0x book value
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : BLDR
The strongest argument for BLDR 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 : BLDR
The primary concerns for BLDR are PEG Ratio, P/E Ratio, Return on Equity. Thin 2.0% margins leave little buffer for downturns.
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
BLDR profiles as a value 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 45/100) 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.
Builders FirstSource Inc
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Builders FirstSource, Inc., manufactures and supplies building materials, manufactured components, and construction services to professional home builders, subcontractors, remodelers, and consumers in the United States. The company is headquartered in Dallas, Texas.
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 BUILDING PRODUCTS & EQUIPMENT Stocks
Want to dig deeper into these stocks?