Caterpillar Inc (CAT)vsWaste Management Inc (WM)
CAT
Caterpillar Inc
$818.57
+1.69%
INDUSTRIALS · Cap: $376.28B
WM
Waste Management Inc
$213.46
-0.17%
INDUSTRIALS · Cap: $85.32B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 191% more annual revenue ($74.73B vs $25.67B). CAT leads profitability with a 14.5% profit margin vs 11.1%. CAT appears more attractively valued with a PEG of 1.41. CAT earns a higher WallStSmart Score of 73/100 (B).
CAT
Strong Buy73
out of 100
Grade: B
WM
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for CAT.
Margin of Safety
-87.6%
Fair Value
$113.80
Current Price
$213.46
$99.66 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 56 in profit
Earnings expanding 68.2% YoY
Strong operational efficiency at 22.2%
Revenue surging 24.0% year-over-year
Generating 3.3B in free cash flow
Large-cap with strong market position
Every $100 of equity generates 29 in profit
Generating 1.1B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Trading at 19.4x book value
Weak financial health signals
Elevated debt levels
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 8.6x book value
4.0% revenue growth
Comparative Analysis Report
WallStSmart ResearchBull Case : CAT
The strongest argument for CAT centers on Market Cap, Return on Equity, EPS Growth. Revenue growth of 24.0% demonstrates continued momentum. PEG of 1.41 suggests the stock is reasonably priced for its growth.
Bull Case : WM
The strongest argument for WM centers on Market Cap, Return on Equity, Free Cash Flow.
Bear Case : CAT
The primary concerns for CAT are P/E Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 2.33 is elevated, increasing financial risk.
Bear Case : WM
The primary concerns for WM are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.35 is elevated, increasing financial risk.
Key Dynamics to Monitor
CAT profiles as a growth stock while WM is a value play — different risk/reward profiles.
CAT carries more volatility with a beta of 1.59 — expect wider price swings.
CAT is growing revenue faster at 24.0% — sustainability is the question.
CAT generates stronger free cash flow (3.3B), providing more financial flexibility.
Bottom Line
CAT scores higher overall (73/100 vs 58/100) and 24.0% revenue growth. Both earn "Strong 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 →Waste Management Inc
INDUSTRIALS · WASTE MANAGEMENT · USA
Waste Management, Inc. is an American waste management, comprehensive waste, and environmental services company in North America. Founded in 1968, the company is headquartered 800 Capitol in Houston, Texas.
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