WallStSmart

Caterpillar Inc (CAT)vsGXO Logistics Inc (GXO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 448% more annual revenue ($74.73B vs $13.64B). CAT leads profitability with a 14.5% profit margin vs 1.0%. GXO appears more attractively valued with a PEG of 1.14. CAT earns a higher WallStSmart Score of 73/100 (B).

CAT

Strong Buy

73

out of 100

Grade: B

Growth: 7.3Profit: 8.0Value: 5.0Quality: 4.5
Piotroski: 3/9Altman Z: 2.40

GXO

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 4.0Value: 5.0Quality: 3.5
Piotroski: 4/9Altman Z: 1.36

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT6 strengths · Avg: 9.0/10
Market CapQuality
$376.28B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
55.9%10/10

Every $100 of equity generates 56 in profit

EPS GrowthGrowth
68.2%10/10

Earnings expanding 68.2% YoY

Operating MarginProfitability
22.2%8/10

Strong operational efficiency at 22.2%

Revenue GrowthGrowth
24.0%8/10

Revenue surging 24.0% year-over-year

Free Cash FlowQuality
$3.26B8/10

Generating 3.3B in free cash flow

GXO1 strengths · Avg: 8.0/10
Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Areas to Watch

CAT4 concerns · Avg: 3.0/10
P/E RatioValuation
34.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
19.2x4/10

Trading at 19.2x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
2.331/10

Elevated debt levels

GXO4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.3%4/10

4.3% revenue growth

Return on EquityProfitability
4.5%3/10

ROE of 4.5% — below average capital efficiency

Profit MarginProfitability
1.0%3/10

1.0% margin — thin

Operating MarginProfitability
3.0%3/10

Operating margin of 3.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : CAT

The strongest argument for CAT centers on Market Cap, Return on Equity, EPS Growth. Revenue growth of 24.0% demonstrates continued momentum. PEG of 1.41 suggests the stock is reasonably priced for its growth.

Bull Case : GXO

The strongest argument for GXO centers on Price/Book. PEG of 1.14 suggests the stock is reasonably priced for its growth.

Bear Case : CAT

The primary concerns for CAT are P/E Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 2.33 is elevated, increasing financial risk.

Bear Case : GXO

The primary concerns for GXO are Revenue Growth, Return on Equity, Profit Margin. A P/E of 40.2x leaves little room for execution misses. Debt-to-equity of 2.05 is elevated, increasing financial risk.

Key Dynamics to Monitor

CAT profiles as a growth stock while GXO is a value play — different risk/reward profiles.

CAT carries more volatility with a beta of 1.59 — expect wider price swings.

CAT is growing revenue faster at 24.0% — sustainability is the question.

CAT generates stronger free cash flow (3.3B), providing more financial flexibility.

Bottom Line

CAT scores higher overall (73/100 vs 49/100) and 24.0% 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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GXO Logistics Inc

INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · USA

GXO Logistics Inc (GXO) is a leading provider of contract logistics services, specializing in supply chain management and tailored logistics solutions for the e-commerce, retail, and consumer goods sectors. The company capitalizes on its extensive global network and innovative technology to drive operational efficiency and responsiveness for its clients, while also committing to sustainable practices. With rising demand for sophisticated warehousing and fulfillment services, GXO is well-positioned to capitalize on evolving market dynamics, supported by a seasoned management team and strategic partnerships aimed at promoting sustainable growth and enhancing shareholder value.

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