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CAT vs CODI

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
CODI
Compass Diversified
BEARISH
Price
$11.49
Market Cap
$864.5M
Sector
Industrials
AI Confidence
90%

Valuation

P/E Ratio
CAT
39.01
CODI
--
Forward P/E
CAT
26.48
CODI
-60.47
P/B Ratio
CAT
16.05
CODI
-24.14
P/S Ratio
CAT
5.09
CODI
0.46
EV/EBITDA
CAT
26.1
CODI
17.96

Profitability

Gross Margin
CAT
28.79%
CODI
43.47%
Operating Margin
CAT
16.02%
CODI
11.03%
Profit Margin
CAT
13.14%
CODI
-12.08%
ROE
CAT
43.53%
CODI
-53.73%
ROA
CAT
7.89%
CODI
1.06%

Growth

Revenue Growth
CAT
18.0%
CODI
-5.1%
Earnings Growth
CAT
-11.4%
CODI
--

Financial Health

Debt/Equity
CAT
2.07
CODI
3.57
Current Ratio
CAT
1.44
CODI
2.42
Quick Ratio
CAT
0.87
CODI
1.04

Dividends

Dividend Yield
CAT
0.85%
CODI
9.45%
Payout Ratio
CAT
31.05%
CODI
404.62%

AI Verdict

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
CODI BEARISH

CODI exhibits severe financial distress, highlighted by a critical Piotroski F-Score of 1/9 and a negative Price-to-Book ratio of -24.14, indicating negative shareholder equity. While the stock has seen a recent short-term price surge, the underlying fundamentals are deteriorating with negative ROE (-53.73%) and declining revenue growth. The dividend is fundamentally unsustainable with a payout ratio of 404.62%, suggesting a high probability of a dividend cut. The disconnect between recent price action and deterministic health scores suggests a speculative bubble or a value trap.

Strengths
Low Price-to-Sales ratio (0.46) suggests the market is pricing the company aggressively low relative to revenue
Strong short-term liquidity with a Current Ratio of 2.42
Healthy Gross Margin of 43.47%
Risks
Critical financial health failure (Piotroski F-Score 1/9)
Unsustainable dividend payout ratio (404.62%)
Negative book value indicating liabilities exceed assets

Compare Another Pair

CAT vs CODI: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Compass Diversified (CODI) 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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