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CAE vs CAT

CAE
CAE Inc.
BEARISH
Price
$25.32
Market Cap
$8.15B
Sector
Industrials
AI Confidence
85%
CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%

Valuation

P/E Ratio
CAE
29.44
CAT
39.01
Forward P/E
CAE
27.71
CAT
26.48
P/B Ratio
CAE
2.15
CAT
16.05
P/S Ratio
CAE
1.68
CAT
5.09
EV/EBITDA
CAE
11.23
CAT
26.1

Profitability

Gross Margin
CAE
28.39%
CAT
28.79%
Operating Margin
CAE
13.62%
CAT
16.02%
Profit Margin
CAE
7.73%
CAT
13.14%
ROE
CAE
7.72%
CAT
43.53%
ROA
CAE
3.74%
CAT
7.89%

Growth

Revenue Growth
CAE
2.3%
CAT
18.0%
Earnings Growth
CAE
-35.9%
CAT
-11.4%

Financial Health

Debt/Equity
CAE
0.62
CAT
2.07
Current Ratio
CAE
0.91
CAT
1.44
Quick Ratio
CAE
0.65
CAT
0.87

Dividends

Dividend Yield
CAE
--
CAT
0.85%
Payout Ratio
CAE
0.0%
CAT
31.05%

AI Verdict

CAE BEARISH

CAE presents a concerning valuation profile, trading at $25.32 despite a Graham Number of $15.09 and an Intrinsic Value of $6.02. While the Piotroski F-Score of 4/9 indicates stable health, this is offset by critical liquidity risks evidenced by a Current Ratio of 0.91 and a Quick Ratio of 0.65. The company is experiencing a severe earnings contraction of -35.9% YoY, which is fundamentally incompatible with its current P/E of 29.44. Technical trends are entirely bearish (0/100), suggesting a lack of market confidence despite optimistic analyst price targets.

Strengths
Manageable Debt/Equity ratio of 0.62
Healthy Operating Margin of 13.62%
Strong historical track record of beating EPS estimates
Risks
Severe earnings decline (-35.9% YoY)
Liquidity risk with Current Ratio below 1.0
Significant overvaluation relative to Graham and Intrinsic value models
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

CAE vs CAT: Head-to-Head Comparison

This page compares CAE Inc. (CAE) 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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