Caterpillar Inc (CAT)vsCanadian Pacific Kansas City Limited (CP)
CAT
Caterpillar Inc
$613.45
-1.47%
INDUSTRIALS · Cap: $286.26B
CP
Canadian Pacific Kansas City Limited
$91.48
+2.01%
INDUSTRIALS · Cap: $77.98B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 386% more annual revenue ($77.77B vs $16.01B). CP leads profitability with a 24.1% profit margin vs 15.2%. CAT appears more attractively valued with a PEG of 1.08. CAT earns a higher WallStSmart Score of 75/100 (B+).
CAT
Strong Buy75
out of 100
Grade: B+
CP
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
+61.8%
Fair Value
$219.65
Current Price
$91.48
$128.17 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 56 in profit
Strong operational efficiency at 20.5%
17.3% revenue growth
Earnings expanding 46.1% YoY
Generating 3.3B in free cash flow
Strong operational efficiency at 38.6%
Large-cap with strong market position
Keeps 24 of every $100 in revenue as profit
Reasonable price relative to book value
15.2% revenue growth
Areas to Watch
Trading at 13.1x book value
Weak financial health signals
Elevated debt levels
Expensive relative to growth rate
Moderate valuation
3.0% earnings growth
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : CAT
The strongest argument for CAT centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 15.2% and operating margin at 20.5%. Revenue growth of 17.3% demonstrates continued momentum.
Bull Case : CP
The strongest argument for CP centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 24.1% and operating margin at 38.6%. Revenue growth of 15.2% demonstrates continued momentum.
Bear Case : CAT
The primary concerns for CAT are Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.33 is elevated, increasing financial risk.
Bear Case : CP
The primary concerns for CP are PEG Ratio, P/E Ratio, EPS Growth.
Key Dynamics to Monitor
CAT carries more volatility with a beta of 1.58 — expect wider price swings.
CAT is growing revenue faster at 17.3% — sustainability is the question.
CAT generates stronger free cash flow (3.3B), providing more financial flexibility.
Monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CAT scores higher overall (75/100 vs 62/100), backed by strong 15.2% margins and 17.3% revenue growth. CP offers better value entry with a 61.8% margin of safety. 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 Pacific Kansas City Limited
INDUSTRIALS · RAILROADS · USA
Canadian Pacific Railway Limited, owns and operates a transcontinental freight railway in Canada and the United States. The company is headquartered in Calgary, Canada.
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