Caterpillar Inc (CAT)vsCanadian National Railway Company (CNI)
CAT
Caterpillar Inc
$890.11
+9.88%
INDUSTRIALS · Cap: $414.16B
CNI
Canadian National Railway Company
$112.12
+3.74%
INDUSTRIALS · Cap: $68.02B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 291% more annual revenue ($67.59B vs $17.30B). CNI leads profitability with a 27.3% profit margin vs 13.1%. CAT appears more attractively valued with a PEG of 2.17. CNI earns a higher WallStSmart Score of 68/100 (B-).
CAT
Buy55
out of 100
Grade: C-
CNI
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
+8.9%
Fair Value
$116.76
Current Price
$112.12
$4.64 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
Strong operational efficiency at 42.4%
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
Trading at 19.4x book value
Weak financial health signals
Premium valuation, high expectations priced in
2.4% revenue growth
Elevated debt levels
Expensive relative to growth rate
Distress zone — elevated risk
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 : CNI
The strongest argument for CNI centers on Operating Margin, Market Cap, Return on Equity. Profitability is solid with margins at 27.3% and operating margin at 42.4%.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 44.2x leaves little room for execution misses. Debt-to-equity of 2.03 is elevated, increasing financial risk.
Bear Case : CNI
The primary concerns for CNI are Revenue Growth, Debt/Equity, PEG Ratio.
Key Dynamics to Monitor
CAT profiles as a growth stock while CNI is a value play — different risk/reward profiles.
CAT carries more volatility with a beta of 1.52 — 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
CNI scores higher overall (68/100 vs 55/100), backed by strong 27.3% margins. 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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