WallStSmart

Caterpillar Inc (CAT)vsVeralto Corporation (VLTO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Caterpillar Inc generates 1108% more annual revenue ($67.59B vs $5.59B). VLTO leads profitability with a 17.3% profit margin vs 13.1%. CAT appears more attractively valued with a PEG of 2.17. VLTO earns a higher WallStSmart Score of 62/100 (C+).

CAT

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 7.5Value: 4.3Quality: 4.5
Piotroski: 3/9Altman Z: 2.40

VLTO

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 8.5Value: 3.3Quality: 5.0
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for CAT.

VLTOSignificantly Overvalued (-70.3%)

Margin of Safety

-70.3%

Fair Value

$55.80

Current Price

$89.47

$33.67 premium

UndervaluedFair: $55.80Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CAT4 strengths · Avg: 9.0/10
Market CapQuality
$414.16B10/10

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

VLTO2 strengths · Avg: 9.0/10
Return on EquityProfitability
36.5%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
23.8%8/10

Strong operational efficiency at 23.8%

Areas to Watch

CAT4 concerns · Avg: 3.3/10
PEG RatioValuation
2.174/10

Expensive relative to growth rate

Price/BookValuation
19.4x4/10

Trading at 19.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
44.2x2/10

Premium valuation, high expectations priced in

VLTO2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.322/10

Expensive relative to growth rate

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 : VLTO

The strongest argument for VLTO centers on Return on Equity, Operating Margin. Profitability is solid with margins at 17.3% and operating margin at 23.8%.

Bear Case : CAT

The primary concerns for CAT are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 44.2x leaves little room for execution misses. Debt-to-equity of 2.03 is elevated, increasing financial risk.

Bear Case : VLTO

The primary concerns for VLTO are Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

CAT profiles as a growth stock while VLTO is a mature play — different risk/reward profiles.

CAT carries more volatility with a beta of 1.52 — 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

VLTO scores higher overall (62/100 vs 55/100), backed by strong 17.3% margins. Both earn "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.

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Veralto Corporation

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Veralto Corporation provides water supply services.

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