WallStSmart

Caterpillar Inc (CAT)vsJacobs Solutions Inc. (J)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 437% more annual revenue ($70.75B vs $13.17B). CAT leads profitability with a 13.3% profit margin vs 2.9%. J appears more attractively valued with a PEG of 0.49. 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

J

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 4.5Value: 5.3Quality: 5.3
Piotroski: 5/9Altman Z: 1.99
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAT.

JSignificantly Overvalued (-28.5%)

Margin of Safety

-28.5%

Fair Value

$110.78

Current Price

$118.43

$7.65 premium

UndervaluedFair: $110.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT5 strengths · Avg: 8.8/10
Market CapQuality
$412.55B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
51.3%10/10

Every $100 of equity generates 51 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

J2 strengths · Avg: 9.0/10
PEG RatioValuation
0.4910/10

Growing faster than its price suggests

Revenue GrowthGrowth
27.0%8/10

Revenue surging 27.0% year-over-year

Areas to Watch

CAT4 concerns · Avg: 2.8/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
44.6x2/10

Premium valuation, high expectations priced in

Price/BookValuation
22.3x2/10

Trading at 22.3x book value

J4 concerns · Avg: 3.3/10
P/E RatioValuation
36.2x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.994/10

Grey zone — moderate risk

Profit MarginProfitability
2.9%3/10

2.9% margin — thin

EPS GrowthGrowth
-63.4%2/10

Earnings declined 63.4%

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 : J

The strongest argument for J centers on PEG Ratio, Revenue Growth. Revenue growth of 27.0% demonstrates continued momentum. PEG of 0.49 suggests the stock is reasonably priced for its growth.

Bear Case : CAT

The primary concerns for CAT are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 44.6x leaves little room for execution misses. Debt-to-equity of 2.03 is elevated, increasing financial risk.

Bear Case : J

The primary concerns for J are P/E Ratio, Altman Z-Score, Profit Margin. Thin 2.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

CAT carries more volatility with a beta of 1.63 — expect wider price swings.

J is growing revenue faster at 27.0% — 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 52/100) and 22.2% revenue growth. Both earn "Strong 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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Jacobs Solutions Inc.

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

Jacobs Engineering Group Inc. (NYSE: J) is an American international technical professional services firm. The company provides technical, professional and construction services, as well as scientific and specialty consulting for a broad range of clients globally, including companies, organizations, and government agencies.

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