WallStSmart

Caterpillar Inc (CAT)vsNL Industries Inc (NL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 44517% more annual revenue ($70.75B vs $158.58M). CAT leads profitability with a 13.3% profit margin vs -21.5%. 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

NL

Hold

42

out of 100

Grade: D

Growth: 5.3Profit: 4.0Value: 5.0Quality: 9.0
Piotroski: 5/9Altman Z: 3.50

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT5 strengths · Avg: 8.8/10
Market CapQuality
$419.05B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
50.5%10/10

Every $100 of equity generates 50 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

NL4 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

EPS GrowthGrowth
551.0%10/10

Earnings expanding 551.0% YoY

Debt/EquityHealth
0.0010/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
3.5010/10

Safe zone — low bankruptcy risk

Areas to Watch

CAT4 concerns · Avg: 2.8/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
45.2x2/10

Premium valuation, high expectations priced in

Price/BookValuation
22.3x2/10

Trading at 22.3x book value

NL4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
0.7%4/10

0.7% revenue growth

Market CapQuality
$293.39M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-8.0%2/10

ROE of -8.0% — below average capital efficiency

Free Cash FlowQuality
$-3.95M2/10

Negative free cash flow — burning cash

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 : NL

The strongest argument for NL centers on Price/Book, EPS Growth, Debt/Equity.

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 : NL

The primary concerns for NL are Revenue Growth, Market Cap, Return on Equity.

Key Dynamics to Monitor

CAT profiles as a growth stock while NL is a turnaround play — different risk/reward profiles.

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

CAT is growing revenue faster at 22.2% — sustainability is the question.

CAT generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

CAT scores higher overall (67/100 vs 42/100) 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.

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NL Industries Inc

INDUSTRIALS · SECURITY & PROTECTION SERVICES · USA

NL Industries, Inc., through its subsidiary, CompX International Inc., operates in the component products industry in the United States and internationally. The company is headquartered in Dallas, Texas.

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