WallStSmart

Caterpillar Inc (CAT)vsKBR Inc (KBR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 768% more annual revenue ($67.59B vs $7.79B). CAT leads profitability with a 13.1% profit margin vs 5.3%. KBR appears more attractively valued with a PEG of 0.50. KBR earns a higher WallStSmart Score of 66/100 (B-).

CAT

Buy

55

out of 100

Grade: C-

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

KBR

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 6.5Value: 9.3Quality: 5.8
Piotroski: 4/9Altman Z: 2.02
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAT.

KBRUndervalued (+22.4%)

Margin of Safety

+22.4%

Fair Value

$52.69

Current Price

$36.02

$16.67 discount

UndervaluedFair: $52.69Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT4 strengths · Avg: 9.0/10
Market CapQuality
$414.16B10/10

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

KBR4 strengths · Avg: 10.0/10
PEG RatioValuation
0.5010/10

Growing faster than its price suggests

P/E RatioValuation
10.3x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.7%10/10

Every $100 of equity generates 31 in profit

EPS GrowthGrowth
52.4%10/10

Earnings expanding 52.4% YoY

Areas to Watch

CAT4 concerns · Avg: 3.3/10
PEG RatioValuation
2.174/10

Expensive relative to growth rate

Price/BookValuation
19.4x4/10

Trading at 19.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
44.2x2/10

Premium valuation, high expectations priced in

KBR2 concerns · Avg: 2.5/10
Profit MarginProfitability
5.3%3/10

5.3% margin — thin

Revenue GrowthGrowth
-10.6%2/10

Revenue declined 10.6%

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 : KBR

The strongest argument for KBR centers on PEG Ratio, P/E Ratio, Return on Equity. PEG of 0.50 suggests the stock is reasonably priced for its growth.

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 : KBR

The primary concerns for KBR are Profit Margin, Revenue Growth.

Key Dynamics to Monitor

CAT profiles as a growth stock while KBR 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

KBR scores higher overall (66/100 vs 55/100). 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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KBR Inc

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

KBR, Inc. provides engineering, science, and technology solutions to governments and commercial customers worldwide. The company is headquartered in Houston, Texas.

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