WallStSmart

Caterpillar Inc (CAT)vsGraham Corporation (GHM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 29684% more annual revenue ($70.75B vs $237.56M). CAT leads profitability with a 13.3% profit margin vs 6.3%. CAT appears more attractively valued with a PEG of 2.06. CAT earns a higher WallStSmart Score of 67/100 (B-).

CAT

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 4.3Quality: 4.5
Piotroski: 3/9Altman Z: 2.40

GHM

Hold

50

out of 100

Grade: D+

Growth: 8.7Profit: 5.5Value: 2.0Quality: 5.3
Piotroski: 1/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAT.

GHMSignificantly Overvalued (-57.9%)

Margin of Safety

-57.9%

Fair Value

$55.91

Current Price

$107.10

$51.19 premium

UndervaluedFair: $55.91Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT5 strengths · Avg: 8.8/10
Market CapQuality
$419.05B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
50.5%10/10

Every $100 of equity generates 50 in profit

Revenue GrowthGrowth
22.2%8/10

Revenue surging 22.2% year-over-year

EPS GrowthGrowth
30.2%8/10

Earnings expanding 30.2% YoY

Free Cash FlowQuality
$1.55B8/10

Generating 1.5B in free cash flow

GHM3 strengths · Avg: 9.0/10
EPS GrowthGrowth
78.6%10/10

Earnings expanding 78.6% YoY

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
20.5%8/10

Revenue surging 20.5% year-over-year

Areas to Watch

CAT4 concerns · Avg: 2.8/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
45.2x2/10

Premium valuation, high expectations priced in

Price/BookValuation
22.3x2/10

Trading at 22.3x book value

GHM4 concerns · Avg: 3.3/10
Price/BookValuation
9.0x4/10

Trading at 9.0x book value

Market CapQuality
$1.19B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

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 22.2% demonstrates continued momentum.

Bull Case : GHM

The strongest argument for GHM centers on EPS Growth, Debt/Equity, Revenue Growth. Revenue growth of 20.5% demonstrates continued momentum.

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 : GHM

The primary concerns for GHM are Price/Book, Market Cap, Profit Margin. A P/E of 79.3x leaves little room for execution misses.

Key Dynamics to Monitor

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.

Monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CAT scores higher overall (67/100 vs 50/100) and 22.2% revenue growth. Both earn "Strong Buy" and "Hold" 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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Graham Corporation

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Graham Corporation designs, manufactures and supplies vacuum and heat transfer equipment for the chemical, defense, petrochemical, oil refining, power generation / alternative energy and other industries. The company is headquartered in Batavia, New York.

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