WallStSmart

Caterpillar Inc (CAT)vsFastenal Company (FAST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 701% more annual revenue ($67.59B vs $8.44B). FAST leads profitability with a 15.4% profit margin vs 13.1%. CAT appears more attractively valued with a PEG of 2.23. FAST earns a higher WallStSmart Score of 62/100 (C+).

CAT

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.5Value: 4.3Quality: 4.5
Piotroski: 3/9Altman Z: 2.40

FAST

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 9.0Value: 5.3Quality: 7.8
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAT.

FASTUndervalued (+56.6%)

Margin of Safety

+56.6%

Fair Value

$108.23

Current Price

$43.71

$64.52 discount

UndervaluedFair: $108.23Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT4 strengths · Avg: 9.0/10
Market CapQuality
$386.56B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
43.5%10/10

Every $100 of equity generates 44 in profit

Revenue GrowthGrowth
18.0%8/10

18.0% revenue growth

Free Cash FlowQuality
$2.25B8/10

Generating 2.2B in free cash flow

FAST4 strengths · Avg: 9.0/10
Return on EquityProfitability
33.8%10/10

Every $100 of equity generates 34 in profit

Market CapQuality
$52.48B9/10

Large-cap with strong market position

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Areas to Watch

CAT4 concerns · Avg: 3.3/10
PEG RatioValuation
2.234/10

Expensive relative to growth rate

Price/BookValuation
17.7x4/10

Trading at 17.7x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
44.2x2/10

Premium valuation, high expectations priced in

FAST3 concerns · Avg: 2.7/10
Price/BookValuation
12.6x4/10

Trading at 12.6x book value

PEG RatioValuation
3.292/10

Expensive relative to growth rate

P/E RatioValuation
40.4x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull 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 : FAST

The strongest argument for FAST centers on Return on Equity, Market Cap, Debt/Equity. Profitability is solid with margins at 15.4% and operating margin at 20.3%. Revenue growth of 12.4% demonstrates continued momentum.

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 : FAST

The primary concerns for FAST are Price/Book, PEG Ratio, P/E Ratio. A P/E of 40.4x leaves little room for execution misses.

Key Dynamics to Monitor

CAT profiles as a growth stock while FAST is a mature 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

FAST scores higher overall (62/100 vs 55/100), backed by strong 15.4% margins and 12.4% revenue growth. 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.

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Fastenal Company

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

Fastenal Company is an American company based in Winona, Minnesota. Fastenal's service model centers on approximately 3,200 in-market locations, each providing custom inventory, and a dedicated sales team to support local businesses. Fastenal offers companies supply chain solutions that help business reduce inventory touches, and supply chain waste.

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