Caterpillar Inc (CAT)vsMercury Systems Inc (MRCY)
CAT
Caterpillar Inc
$818.57
+1.69%
INDUSTRIALS · Cap: $376.28B
MRCY
Mercury Systems Inc
$80.61
+0.22%
INDUSTRIALS · Cap: $4.86B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 7497% more annual revenue ($74.73B vs $983.62M). CAT leads profitability with a 14.5% profit margin vs -3.0%. CAT appears more attractively valued with a PEG of 1.41. CAT earns a higher WallStSmart Score of 73/100 (B).
CAT
Strong Buy73
out of 100
Grade: B
MRCY
Avoid32
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
-37.9%
Fair Value
$58.26
Current Price
$80.61
$22.35 premium
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
No standout strengths identified
Areas to Watch
Premium valuation, high expectations priced in
Trading at 19.4x book value
Weak financial health signals
Elevated debt levels
Grey zone — moderate risk
Operating margin of 1.2%
Expensive relative to growth rate
ROE of -1.0% — below average capital efficiency
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. PEG of 1.41 suggests the stock is reasonably priced for its growth.
Bull Case : MRCY
MRCY has a balanced fundamental profile.
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 : MRCY
The primary concerns for MRCY are Altman Z-Score, Operating Margin, PEG Ratio.
Key Dynamics to Monitor
CAT profiles as a growth stock while MRCY is a turnaround 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 32/100) and 24.0% revenue growth. Both earn "Strong Buy" and "Avoid" 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 →Mercury Systems Inc
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Mercury Systems, Inc., a technology company, manufactures and sells components, modules, and subsystems in the United States, Europe, and Asia Pacific. The company is headquartered in Andover, Massachusetts.
Compare with Other FARM & HEAVY CONSTRUCTION MACHINERY Stocks
Want to dig deeper into these stocks?