WallStSmart

Caterpillar Inc (CAT)vsTerex Corporation (TEX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 1147% more annual revenue ($67.59B vs $5.42B). CAT leads profitability with a 13.1% profit margin vs 4.1%. TEX appears more attractively valued with a PEG of 1.48. CAT earns a higher WallStSmart Score of 57/100 (C).

CAT

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 7.5Value: 7.3Quality: 4.5
Piotroski: 3/9Altman Z: 2.40

TEX

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 5.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CATSignificantly Overvalued (-432.9%)

Margin of Safety

-432.9%

Fair Value

$127.77

Current Price

$680.88

$553.11 premium

UndervaluedFair: $127.77Overvalued
TEXSignificantly Overvalued (-205.1%)

Margin of Safety

-205.1%

Fair Value

$22.64

Current Price

$57.18

$34.54 premium

UndervaluedFair: $22.64Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT4 strengths · Avg: 9.0/10
Market CapQuality
$318.64B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
43.5%10/10

Every $100 of equity generates 44 in profit

Revenue GrowthGrowth
18.0%8/10

18.0% revenue growth

Free Cash FlowQuality
$2.25B8/10

Generating 2.2B in free cash flow

TEX2 strengths · Avg: 8.0/10
P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Areas to Watch

CAT4 concerns · Avg: 3.8/10
PEG RatioValuation
1.864/10

Expensive relative to growth rate

P/E RatioValuation
36.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
14.9x4/10

Trading at 14.9x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

TEX2 concerns · Avg: 2.5/10
Profit MarginProfitability
4.1%3/10

4.1% margin — thin

EPS GrowthGrowth
-25.2%2/10

Earnings declined 25.2%

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 18.0% demonstrates continued momentum.

Bull Case : TEX

The strongest argument for TEX centers on P/E Ratio, Price/Book. PEG of 1.48 suggests the stock is reasonably priced for its growth.

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 : TEX

The primary concerns for TEX are Profit Margin, EPS Growth. Thin 4.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

CAT profiles as a growth stock while TEX is a value play — different risk/reward profiles.

TEX carries more volatility with a beta of 1.61 — 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 (57/100 vs 47/100) and 18.0% revenue growth. Both earn "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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Terex Corporation

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

Terex Corporation manufactures and sells aerial work platforms and materials processing machinery worldwide. The company is headquartered in Norwalk, Connecticut.

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