Caterpillar Inc (CAT)vsCanadian National Railway Company (CNI)
CAT
Caterpillar Inc
$904.28
+1.44%
INDUSTRIALS · Cap: $419.05B
CNI
Canadian National Railway Company
$120.38
+0.74%
INDUSTRIALS · Cap: $72.98B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 309% more annual revenue ($70.75B vs $17.28B). CNI leads profitability with a 27.2% profit margin vs 13.3%. CAT appears more attractively valued with a PEG of 2.06. CAT earns a higher WallStSmart Score of 67/100 (B-).
CAT
Strong Buy67
out of 100
Grade: B-
CNI
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
-0.4%
Fair Value
$105.89
Current Price
$120.38
$14.49 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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
Strong operational efficiency at 38.4%
Large-cap with strong market position
Every $100 of equity generates 22 in profit
Keeps 27 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 22.3x book value
1.1% earnings growth
Elevated debt levels
Expensive relative to growth rate
Revenue declined 0.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : CAT
The strongest argument for CAT centers on Market Cap, Return on Equity, Revenue Growth. Revenue growth of 22.2% demonstrates continued momentum.
Bull Case : CNI
The strongest argument for CNI centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 27.2% and operating margin at 38.4%.
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.
Bear Case : CNI
The primary concerns for CNI are EPS Growth, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
CAT profiles as a growth stock while CNI is a declining 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 59/100) 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.
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 →Canadian National Railway Company
INDUSTRIALS · RAILROADS · USA
Canadian National Railway Company, is engaged in the rail and related transportation business. The company is headquartered in Montreal, Canada.
Visit Website →Compare with Other FARM & HEAVY CONSTRUCTION MACHINERY Stocks
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