Caterpillar Inc (CAT)vsToronto Dominion Bank (TD)
CAT
Caterpillar Inc
$719.04
+0.34%
INDUSTRIALS · Cap: $335.37B
TD
Toronto Dominion Bank
$94.30
+0.82%
FINANCIAL SERVICES · Cap: $156.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 2% more annual revenue ($67.59B vs $65.98B). TD leads profitability with a 33.0% profit margin vs 13.1%. TD appears more attractively valued with a PEG of 1.01. TD earns a higher WallStSmart Score of 83/100 (A-).
CAT
Buy57
out of 100
Grade: C
TD
Exceptional Buy83
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-463.1%
Fair Value
$127.70
Current Price
$719.04
$591.34 premium
Margin of Safety
+77.4%
Fair Value
$420.26
Current Price
$94.30
$325.96 discount
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
Attractively priced relative to earnings
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 35.9%
Earnings expanding 51.3% YoY
Generating 35.1B in free cash flow
Large-cap with strong market position
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 15.7x book value
Weak financial health signals
Distress zone — elevated risk
Elevated debt levels
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 : TD
The strongest argument for TD centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 33.0% and operating margin at 35.9%. Revenue growth of 21.1% demonstrates continued momentum.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.03 is elevated, increasing financial risk.
Bear Case : TD
The primary concerns for TD are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.14 is elevated, increasing financial risk.
Key Dynamics to Monitor
CAT carries more volatility with a beta of 1.53 — expect wider price swings.
TD is growing revenue faster at 21.1% — sustainability is the question.
TD generates stronger free cash flow (35.1B), providing more financial flexibility.
Monitor FARM & HEAVY CONSTRUCTION MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TD scores higher overall (83/100 vs 57/100), backed by strong 33.0% margins and 21.1% revenue growth. Both earn "Exceptional 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 →Toronto Dominion Bank
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Toronto-Dominion Bank offers a variety of personal and commercial banking products and services in Canada and the United States. The company is headquartered in Toronto, Canada.
Visit Website →Compare with Other FARM & HEAVY CONSTRUCTION MACHINERY Stocks
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