Caterpillar Inc (CAT)vsTE Connectivity Ltd (TEL)
CAT
Caterpillar Inc
$897.45
+0.20%
INDUSTRIALS · Cap: $412.55B
TEL
TE Connectivity Ltd
$206.20
-1.84%
TECHNOLOGY · Cap: $60.19B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 278% more annual revenue ($70.75B vs $18.70B). TEL leads profitability with a 15.5% profit margin vs 13.3%. TEL appears more attractively valued with a PEG of 1.12. TEL earns a higher WallStSmart Score of 76/100 (B+).
CAT
Strong Buy67
out of 100
Grade: B-
TEL
Strong Buy76
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
-60.0%
Fair Value
$142.79
Current Price
$206.20
$63.41 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 51 in profit
Revenue surging 22.2% year-over-year
Earnings expanding 30.2% YoY
Generating 1.5B in free cash flow
Earnings expanding 7150.0% YoY
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Strong operational efficiency at 20.3%
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Premium valuation, high expectations priced in
Trading at 22.3x book value
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull 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 : TEL
The strongest argument for TEL centers on EPS Growth, Market Cap, Return on Equity. Profitability is solid with margins at 15.5% and operating margin at 20.3%. Revenue growth of 14.5% demonstrates continued momentum.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 44.6x leaves little room for execution misses. Debt-to-equity of 2.03 is elevated, increasing financial risk.
Bear Case : TEL
No major red flags identified for TEL, but monitor valuation.
Key Dynamics to Monitor
CAT profiles as a growth stock while TEL is a mature 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
TEL scores higher overall (76/100 vs 67/100), backed by strong 15.5% margins and 14.5% revenue growth. Both earn "Strong Buy" and "Strong 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 →TE Connectivity Ltd
TECHNOLOGY · ELECTRONIC COMPONENTS · USA
TE Connectivity is an American Swiss-domiciled technology company that designs and manufactures connectors and sensors for several industries, such as automotive, industrial equipment, data communication systems, aerospace, defense, medical, oil and gas, consumer electronics and energy.
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