WallStSmart

Caterpillar Inc (CAT)vsWW Grainger Inc (GWW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 277% more annual revenue ($67.59B vs $17.94B). CAT leads profitability with a 13.1% profit margin vs 9.5%. GWW appears more attractively valued with a PEG of 1.95. CAT earns a higher WallStSmart Score of 55/100 (C-).

CAT

Buy

55

out of 100

Grade: C-

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

GWW

Buy

50

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 3.3Quality: 6.3
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAT.

GWWSignificantly Overvalued (-82.5%)

Margin of Safety

-82.5%

Fair Value

$658.96

Current Price

$1144.81

$485.85 premium

UndervaluedFair: $658.96Overvalued

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

GWW2 strengths · Avg: 9.5/10
Return on EquityProfitability
46.1%10/10

Every $100 of equity generates 46 in profit

Market CapQuality
$54.33B9/10

Large-cap with strong market position

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

GWW4 concerns · Avg: 4.0/10
PEG RatioValuation
1.954/10

Expensive relative to growth rate

P/E RatioValuation
32.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
14.5x4/10

Trading at 14.5x book value

Revenue GrowthGrowth
4.5%4/10

4.5% revenue growth

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 : GWW

The strongest argument for GWW centers on Return on Equity, Market Cap.

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 : GWW

The primary concerns for GWW are PEG Ratio, P/E Ratio, Price/Book.

Key Dynamics to Monitor

CAT profiles as a growth stock while GWW 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

CAT scores higher overall (55/100 vs 50/100) and 18.0% 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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WW Grainger Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

W. W. Grainger, Inc. is an American Fortune 500 industrial supply company founded in 1927 in Chicago by William W. (Bill) Grainger.

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