Caterpillar Inc (CAT)vsHowmet Aerospace Inc (HWM)
CAT
Caterpillar Inc
$779.00
-2.30%
INDUSTRIALS · Cap: $367.85B
HWM
Howmet Aerospace Inc
$244.95
-7.51%
INDUSTRIALS · Cap: $105.62B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 720% more annual revenue ($74.73B vs $9.12B). HWM leads profitability with a 20.5% profit margin vs 14.5%. HWM appears more attractively valued with a PEG of 0.80. HWM earns a higher WallStSmart Score of 75/100 (B+).
CAT
Strong Buy71
out of 100
Grade: B
HWM
Strong Buy75
out of 100
Grade: B+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 56 in profit
Earnings expanding 68.2% YoY
Strong operational efficiency at 22.2%
Revenue surging 24.0% year-over-year
Generating 3.3B in free cash flow
Every $100 of equity generates 33 in profit
Large-cap with strong market position
Keeps 21 of every $100 in revenue as profit
Growing faster than its price suggests
Strong operational efficiency at 28.5%
Revenue surging 24.1% year-over-year
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 18.5x book value
Weak financial health signals
Trading at 17.1x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : CAT
The strongest argument for CAT centers on Market Cap, Return on Equity, EPS Growth. Revenue growth of 24.0% demonstrates continued momentum.
Bull Case : HWM
The strongest argument for HWM centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 28.5%. Revenue growth of 24.1% demonstrates continued momentum.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.33 is elevated, increasing financial risk.
Bear Case : HWM
The primary concerns for HWM are Price/Book, P/E Ratio. A P/E of 57.8x leaves little room for execution misses.
Key Dynamics to Monitor
CAT carries more volatility with a beta of 1.60 — expect wider price swings.
HWM is growing revenue faster at 24.1% — 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
HWM scores higher overall (75/100 vs 71/100), backed by strong 20.5% margins and 24.1% revenue growth. Both earn "Strong Buy" and "Strong 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 →Howmet Aerospace Inc
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Howmet Aerospace Inc. is an American aerospace company based in Pittsburgh, Pennsylvania. The company manufactures components for jet engines, fasteners and titanium structures for aerospace applications, and forged aluminum wheels for heavy trucks.
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