Avis Budget Group Inc (CAR)vsCaterpillar Inc (CAT)
CAR
Avis Budget Group Inc
$176.79
-0.01%
INDUSTRIALS · Cap: $6.61B
CAT
Caterpillar Inc
$904.28
+1.44%
INDUSTRIALS · Cap: $419.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 502% more annual revenue ($70.75B vs $11.75B). CAT leads profitability with a 13.3% profit margin vs -5.7%. CAR appears more attractively valued with a PEG of 0.17. CAT earns a higher WallStSmart Score of 67/100 (B-).
CAR
Buy51
out of 100
Grade: C-
CAT
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-87.2%
Fair Value
$61.90
Current Price
$176.79
$114.89 premium
Intrinsic value data unavailable for CAT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Earnings expanding 52.0% YoY
Conservative balance sheet, low leverage
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
4.1% revenue growth
Operating margin of 1.8%
Weak financial health signals
ROE of -273.1% — below average capital efficiency
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 : CAR
The strongest argument for CAR centers on PEG Ratio, EPS Growth, Debt/Equity. PEG of 0.17 suggests the stock is reasonably priced for its growth.
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 : CAR
The primary concerns for CAR are Revenue Growth, Operating Margin, Piotroski F-Score.
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
CAR profiles as a turnaround stock while CAT is a growth play — different risk/reward profiles.
CAR carries more volatility with a beta of 1.87 — 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 51/100) 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.
Avis Budget Group Inc
INDUSTRIALS · RENTAL & LEASING SERVICES · USA
Avis Budget Group, Inc., offers car and truck rental, car sharing and ancillary services to businesses and consumers. The company is headquartered in Parsippany, New Jersey.
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 RENTAL & LEASING SERVICES Stocks
Want to dig deeper into these stocks?