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ALG vs CAT

ALG
Alamo Group Inc.
NEUTRAL
Price
$191.14
Market Cap
$2.32B
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
ALG
19.99
CAT
39.01
Forward P/E
ALG
15.99
CAT
26.48
P/B Ratio
ALG
2.02
CAT
16.05
P/S Ratio
ALG
1.43
CAT
5.09
EV/EBITDA
ALG
10.52
CAT
26.1

Profitability

Gross Margin
ALG
25.05%
CAT
28.79%
Operating Margin
ALG
8.94%
CAT
16.02%
Profit Margin
ALG
7.2%
CAT
13.14%
ROE
ALG
10.82%
CAT
43.53%
ROA
ALG
6.64%
CAT
7.89%

Growth

Revenue Growth
ALG
4.7%
CAT
18.0%
Earnings Growth
ALG
-7.9%
CAT
-11.4%

Financial Health

Debt/Equity
ALG
0.2
CAT
2.07
Current Ratio
ALG
4.43
CAT
1.44
Quick Ratio
ALG
2.68
CAT
0.87

Dividends

Dividend Yield
ALG
0.64%
CAT
0.85%
Payout Ratio
ALG
12.03%
CAT
31.05%

AI Verdict

ALG NEUTRAL

Alamo Group Inc. (ALG) exhibits strong financial health with a Piotroski F-Score of 8/9, indicating robust accounting fundamentals. However, the stock trades above its Graham Number of $142.55 at a current price of $191.14, suggesting overvaluation on a defensive basis, while growth metrics are mixed with declining YoY earnings. Despite solid profitability and low leverage, insider selling and inconsistent earnings beats over the last four quarters weigh on sentiment. Relative to sector peers, ALG has lower revenue growth and below-average profit margins, though it maintains a healthier balance sheet.

Strengths
Strong financial health indicated by Piotroski F-Score of 8/9
Low debt burden with Debt/Equity ratio of 0.20
High liquidity with Current Ratio of 4.43 and Quick Ratio of 2.68
Risks
Earnings underperformance with 1 out of last 4 quarters beating estimates
Declining YoY earnings growth of -7.90% and Q/Q EPS drop of -8.9%
Insider selling activity totaling $1.18M in the past 6 months
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

ALG vs CAT: Head-to-Head Comparison

This page compares Alamo Group Inc. (ALG) 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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