Caterpillar Inc (CAT)vsCummins Inc (CMI)
CAT
Caterpillar Inc
$695.40
-4.02%
INDUSTRIALS · Cap: $325.43B
CMI
Cummins Inc
$523.24
-1.28%
INDUSTRIALS · Cap: $72.29B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 101% more annual revenue ($67.59B vs $33.67B). CAT leads profitability with a 13.1% profit margin vs 8.4%. CMI appears more attractively valued with a PEG of 1.44. CMI earns a higher WallStSmart Score of 61/100 (C+).
CAT
Buy57
out of 100
Grade: C
CMI
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-444.6%
Fair Value
$127.70
Current Price
$695.40
$567.70 premium
Margin of Safety
+37.6%
Fair Value
$959.87
Current Price
$523.24
$436.63 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
18.0% revenue growth
Generating 2.2B in free cash flow
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Earnings expanding 41.4% YoY
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 15.2x book value
Weak financial health signals
Moderate valuation
1.1% revenue growth
Comparative Analysis Report
WallStSmart ResearchBull Case : CAT
The strongest argument for CAT centers on Market Cap, Return on Equity, Revenue Growth. Revenue growth of 18.0% demonstrates continued momentum.
Bull Case : CMI
The strongest argument for CMI centers on Market Cap, Return on Equity, EPS Growth. PEG of 1.44 suggests the stock is reasonably priced for its growth.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.03 is elevated, increasing financial risk.
Bear Case : CMI
The primary concerns for CMI are P/E Ratio, Revenue Growth.
Key Dynamics to Monitor
CAT profiles as a growth stock while CMI is a value play — different risk/reward profiles.
CAT carries more volatility with a beta of 1.53 — expect wider price swings.
CAT is growing revenue faster at 18.0% — sustainability is the question.
CAT generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
CMI scores higher overall (61/100 vs 57/100). Both earn "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.
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 →Cummins Inc
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Cummins is a Columbus, Indiana based multinational corporation that designs, manufactures, and distributes engines, filtration, and power generation products. Cummins also services engines and related equipment, including fuel systems, controls, air handling, filtration, emission control, electrical power generation systems, and trucks.
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