WallStSmart

Caterpillar Inc (CAT)vsQuanex Building Products (NX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 3731% more annual revenue ($70.75B vs $1.85B). CAT leads profitability with a 13.3% profit margin vs -13.0%. NX appears more attractively valued with a PEG of 0.66. 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

NX

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 3.5Value: 7.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAT.

NXUndervalued (+77.3%)

Margin of Safety

+77.3%

Fair Value

$98.50

Current Price

$20.11

$78.39 discount

UndervaluedFair: $98.50Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT5 strengths · Avg: 8.8/10
Market CapQuality
$402.92B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
51.3%10/10

Every $100 of equity generates 51 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

NX2 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

PEG RatioValuation
0.668/10

Growing faster than its price suggests

Areas to Watch

CAT4 concerns · Avg: 2.8/10
PEG RatioValuation
2.394/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
43.5x2/10

Premium valuation, high expectations priced in

Price/BookValuation
20.2x2/10

Trading at 20.2x book value

NX4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.3%4/10

2.3% revenue growth

Market CapQuality
$899.93M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
0.7%3/10

Operating margin of 0.7%

Return on EquityProfitability
-28.2%2/10

ROE of -28.2% — below average capital efficiency

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 : NX

The strongest argument for NX centers on Price/Book, PEG Ratio. PEG of 0.66 suggests the stock is reasonably priced for its growth.

Bear Case : CAT

The primary concerns for CAT are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 43.5x leaves little room for execution misses. Debt-to-equity of 2.03 is elevated, increasing financial risk.

Bear Case : NX

The primary concerns for NX are Revenue Growth, Market Cap, Operating Margin.

Key Dynamics to Monitor

CAT profiles as a growth stock while NX 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 47/100) and 22.2% revenue growth. NX offers better value entry with a 77.3% margin of safety. 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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Quanex Building Products

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

Quanex Building Products Corporation (NX) is a prominent manufacturer of innovative engineered materials and components for the building and construction sector, distinguished by its dedication to quality and sustainability. The company's extensive product offerings encompass energy-efficient window and door systems, alongside advanced engineered wood products, effectively addressing the needs of both residential and commercial markets. With an emphasis on operational excellence and a strong foundation in material science, Quanex utilizes its proprietary technologies to provide exceptional value, securing a competitive position in a rapidly evolving industry landscape focused on sustainable construction practices.

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