Caterpillar Inc (CAT)vsNorfolk Southern Corporation (NSC)
CAT
Caterpillar Inc
$810.05
+9.88%
INDUSTRIALS · Cap: $386.56B
NSC
Norfolk Southern Corporation
$312.12
-1.45%
INDUSTRIALS · Cap: $71.80B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 455% more annual revenue ($67.59B vs $12.19B). NSC leads profitability with a 21.9% profit margin vs 13.1%. CAT appears more attractively valued with a PEG of 2.23. NSC earns a higher WallStSmart Score of 55/100 (C).
CAT
Buy55
out of 100
Grade: C-
NSC
Buy55
out of 100
Grade: C
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
18.0% revenue growth
Generating 2.2B in free cash flow
Strong operational efficiency at 32.3%
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
Trading at 17.7x book value
Weak financial health signals
Premium valuation, high expectations priced in
Moderate valuation
0.2% revenue growth
Expensive relative to growth rate
Earnings declined 26.6%
Comparative Analysis Report
WallStSmart ResearchBull 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 : NSC
The strongest argument for NSC centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 21.9% and operating margin at 32.3%.
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 : NSC
The primary concerns for NSC are P/E Ratio, Revenue Growth, PEG Ratio.
Key Dynamics to Monitor
CAT profiles as a growth stock while NSC 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
CAT scores higher overall (55/100 vs 55/100) and 18.0% revenue growth. Both earn "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.
Visit Website →Norfolk Southern Corporation
INDUSTRIALS · RAILROADS · USA
The Norfolk Southern Railway is a Class I freight railroad in the United States, and is the current name of the former Southern Railway. With headquarters in Atlanta, Georgia, the company operates 19,420 route miles (31,250 km) in 22 eastern states, the District of Columbia, and has rights in Canada over the Albany to Montreal route of the Canadian Pacific Railway, and previously on CN from Buffalo to St. Thomas.
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