WallStSmart

Caterpillar Inc (CAT)vsRXO Inc. (RXO)

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Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 1177% more annual revenue ($77.77B vs $6.09B). CAT leads profitability with a 15.2% profit margin vs -1.7%. CAT appears more attractively valued with a PEG of 1.08. CAT earns a higher WallStSmart Score of 75/100 (B+).

CAT

Strong Buy

75

out of 100

Grade: B+

Growth: 7.3Profit: 8.5Value: 5.7Quality: 4.5
Piotroski: 3/9Altman Z: 2.40

RXO

Hold

41

out of 100

Grade: D

Growth: 5.3Profit: 2.5Value: 3.0Quality: 6.5
Piotroski: 4/9Altman Z: 2.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAT.

RXOSignificantly Overvalued (-33.1%)

Margin of Safety

-33.1%

Fair Value

$12.27

Current Price

$27.60

$15.33 premium

UndervaluedFair: $12.27Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT6 strengths · Avg: 8.7/10
Market CapQuality
$286.26B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
55.1%10/10

Every $100 of equity generates 55 in profit

Operating MarginProfitability
20.5%8/10

Strong operational efficiency at 20.5%

Revenue GrowthGrowth
17.3%8/10

17.3% revenue growth

EPS GrowthGrowth
46.1%8/10

Earnings expanding 46.1% YoY

Free Cash FlowQuality
$3.40B8/10

Generating 3.4B in free cash flow

RXO2 strengths · Avg: 8.0/10
Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
25.0%8/10

Revenue surging 25.0% year-over-year

Areas to Watch

CAT3 concerns · Avg: 2.7/10
Price/BookValuation
11.9x4/10

Trading at 11.9x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Debt/EquityHealth
2.101/10

Elevated debt levels

RXO4 concerns · Avg: 2.3/10
Operating MarginProfitability
0.7%3/10

Operating margin of 0.7%

PEG RatioValuation
172.132/10

Expensive relative to growth rate

Return on EquityProfitability
-7.0%2/10

ROE of -7.0% — below average capital efficiency

EPS GrowthGrowth
-93.2%2/10

Earnings declined 93.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : CAT

The strongest argument for CAT centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 15.2% and operating margin at 20.5%. Revenue growth of 17.3% demonstrates continued momentum.

Bull Case : RXO

The strongest argument for RXO centers on Price/Book, Revenue Growth. Revenue growth of 25.0% demonstrates continued momentum.

Bear Case : CAT

The primary concerns for CAT are Price/Book, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.10 is elevated, increasing financial risk.

Bear Case : RXO

The primary concerns for RXO are Operating Margin, PEG Ratio, Return on Equity.

Key Dynamics to Monitor

RXO carries more volatility with a beta of 1.99 — expect wider price swings.

RXO is growing revenue faster at 25.0% — sustainability is the question.

CAT generates stronger free cash flow (3.4B), providing more financial flexibility.

Monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CAT scores higher overall (75/100 vs 41/100), backed by strong 15.2% margins and 17.3% 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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RXO Inc.

INDUSTRIALS · TRUCKING · USA

RXO Inc. is a leading entity in the transportation and logistics sector, specializing in advanced freight solutions across North America. Leveraging innovative technology and data analytics, RXO significantly improves supply chain efficiency and cost-effectiveness for a diverse clientele. The company's unwavering focus on sustainability and continuous innovation enhances its operational prowess and competitive stature in a dynamic logistics landscape. With a robust network and strategic alliances, RXO is strategically positioned to meet the evolving needs of the industry, representing a promising opportunity for institutional investors looking for growth in logistics.

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