Caterpillar Inc (CAT)vsKratos Defense & Security Solutions (KTOS)
CAT
Caterpillar Inc
$904.28
+1.44%
INDUSTRIALS · Cap: $419.05B
KTOS
Kratos Defense & Security Solutions
$63.40
-1.75%
INDUSTRIALS · Cap: $10.83B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 4900% more annual revenue ($70.75B vs $1.42B). CAT leads profitability with a 13.3% profit margin vs 2.1%. CAT appears more attractively valued with a PEG of 2.06. CAT earns a higher WallStSmart Score of 67/100 (B-).
CAT
Strong Buy67
out of 100
Grade: B-
KTOS
Hold48
out of 100
Grade: D+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 50 in profit
Revenue surging 22.2% year-over-year
Earnings expanding 30.2% YoY
Generating 1.5B in free cash flow
Earnings expanding 130.6% YoY
Conservative balance sheet, low leverage
Safe zone — low bankruptcy risk
Revenue surging 22.6% year-over-year
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 22.3x book value
ROE of 0.9% — below average capital efficiency
2.1% margin — thin
Operating margin of 1.8%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : KTOS
The strongest argument for KTOS centers on EPS Growth, Debt/Equity, Altman Z-Score. Revenue growth of 22.6% demonstrates continued momentum.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 45.2x leaves little room for execution misses. Debt-to-equity of 2.31 is elevated, increasing financial risk.
Bear Case : KTOS
The primary concerns for KTOS are Return on Equity, Profit Margin, Operating Margin. A P/E of 339.7x leaves little room for execution misses. Thin 2.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
CAT carries more volatility with a beta of 1.63 — expect wider price swings.
KTOS is growing revenue faster at 22.6% — 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 48/100) and 22.2% 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.
Visit Website →Kratos Defense & Security Solutions
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Kratos Defense & Security Solutions, Inc. is a government contractor for the US Department of Defense. The company is headquartered in San Diego, California.
Visit Website →Compare with Other FARM & HEAVY CONSTRUCTION MACHINERY Stocks
Want to dig deeper into these stocks?