Caterpillar Inc (CAT)vsCompass Diversified Holdings (CODI)
CAT
Caterpillar Inc
$842.19
-1.72%
INDUSTRIALS · Cap: $382.31B
CODI
Compass Diversified Holdings
$11.00
+2.14%
INDUSTRIALS · Cap: $810.29M
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 3732% more annual revenue ($70.75B vs $1.85B). CAT leads profitability with a 13.3% profit margin vs -12.3%. CAT appears more attractively valued with a PEG of 1.91. CAT earns a higher WallStSmart Score of 69/100 (B-).
CAT
Strong Buy69
out of 100
Grade: B-
CODI
Avoid31
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
+75.2%
Fair Value
$26.87
Current Price
$11.00
$15.87 discount
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
No standout strengths identified
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 20.8x book value
Smaller company, higher risk/reward
Operating margin of 4.3%
Expensive relative to growth rate
ROE of -51.0% — below average capital efficiency
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 : CODI
CODI has a balanced fundamental profile.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 42.9x leaves little room for execution misses. Debt-to-equity of 2.31 is elevated, increasing financial risk.
Bear Case : CODI
The primary concerns for CODI are Market Cap, Operating Margin, PEG Ratio. Debt-to-equity of 4.64 is elevated, increasing financial risk.
Key Dynamics to Monitor
CAT profiles as a growth stock while CODI is a turnaround play — different risk/reward profiles.
CAT carries more volatility with a beta of 1.60 — 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 (69/100 vs 31/100) and 22.2% revenue growth. CODI offers better value entry with a 75.2% margin of safety. Both earn "Strong Buy" and "Avoid" 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 →Compass Diversified Holdings
INDUSTRIALS · CONGLOMERATES · USA
Compass Diversified Holdings (CODI) is a leading private equity firm that specializes in the acquisition and management of a diverse portfolio of middle-market companies across sectors such as consumer products, industrials, and outdoor goods. The firm is committed to operational excellence and value creation, employing strategic enhancements to drive sustainable growth and performance improvements across its investments. With a strong focus on long-term value and attractive risk-adjusted returns, CODI leverages its extensive industry expertise and disciplined investment approach to deliver compelling opportunities for institutional investors in the alternative investment landscape.
Visit Website →Compare with Other FARM & HEAVY CONSTRUCTION MACHINERY Stocks
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