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AIT vs CAT

AIT
Applied Industrial Technologies, Inc.
NEUTRAL
Price
$280.14
Market Cap
$10.58B
Sector
Industrials
AI Confidence
72%
CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%

Valuation

P/E Ratio
AIT
27.17
CAT
39.01
Forward P/E
AIT
24.11
CAT
26.48
P/B Ratio
AIT
5.61
CAT
16.05
P/S Ratio
AIT
2.27
CAT
5.09
EV/EBITDA
AIT
18.5
CAT
26.1

Profitability

Gross Margin
AIT
30.44%
CAT
28.79%
Operating Margin
AIT
10.76%
CAT
16.02%
Profit Margin
AIT
8.61%
CAT
13.14%
ROE
AIT
22.1%
CAT
43.53%
ROA
AIT
10.42%
CAT
7.89%

Growth

Revenue Growth
AIT
9.2%
CAT
18.0%
Earnings Growth
AIT
11.4%
CAT
-11.4%

Financial Health

Debt/Equity
AIT
0.3
CAT
2.07
Current Ratio
AIT
3.55
CAT
1.44
Quick Ratio
AIT
2.38
CAT
0.87

Dividends

Dividend Yield
AIT
0.65%
CAT
0.85%
Payout Ratio
AIT
16.84%
CAT
31.05%

AI Verdict

AIT NEUTRAL

The Advanced Deterministic Scorecard reveals a mixed fundamental picture: the Piotroski F-Score of 4/9 indicates stable but not robust financial health, while the absence of an Altman Z-Score prevents a clear distress risk assessment. Despite strong profitability metrics like ROE of 22.10% and solid earnings growth of 11.4%, the stock trades at a premium valuation (P/E 27.17 vs. sector avg 50.40) with weakening technical momentum (Technical Trend: 10/100). Insider selling worth $11.22M over the last six months raises caution, even as analysts maintain a strong_buy recommendation. The stock is priced above both the Graham defensive value ($107.64) and intrinsic estimate ($248.47), suggesting limited margin of safety.

Strengths
Consistent earnings beat streak with 3 out of last 4 quarters exceeding estimates and an average surprise of 6.42%
Strong return metrics: ROE of 22.10% and ROA of 10.42% significantly outperform sector averages
Healthy balance sheet with low Debt/Equity of 0.30 and strong liquidity (Current Ratio: 3.55)
Risks
Piotroski F-Score of 4/9 suggests only moderate financial health, limiting downside protection
Absence of Altman Z-Score creates uncertainty in bankruptcy risk assessment
Valuation appears stretched with P/E of 27.17 and Price/Book of 5.61, especially relative to Graham Number of $107.64
CAT NEUTRAL

CAT shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Strong revenue growth of 18.0%
Strong ROE of 43.5%
Risks
High valuation with P/E of 39.0
Premium vs Graham Number ($139.4)
High debt burden with D/E of 2.07

Compare Another Pair

AIT vs CAT: Head-to-Head Comparison

This page compares Applied Industrial Technologies, Inc. (AIT) and Caterpillar Inc. (CAT) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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