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CAT vs CSW

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
CSW
CSW Industrials, Inc.
NEUTRAL
Price
$296.18
Market Cap
$4.94B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
CSW
39.23
Forward P/E
CAT
26.48
CSW
25.29
P/B Ratio
CAT
16.05
CSW
4.57
P/S Ratio
CAT
5.09
CSW
4.92
EV/EBITDA
CAT
26.1
CSW
24.26

Profitability

Gross Margin
CAT
28.79%
CSW
42.72%
Operating Margin
CAT
16.02%
CSW
7.44%
Profit Margin
CAT
13.14%
CSW
12.64%
ROE
CAT
43.53%
CSW
11.87%
ROA
CAT
7.89%
CSW
6.1%

Growth

Revenue Growth
CAT
18.0%
CSW
20.3%
Earnings Growth
CAT
-11.4%
CSW
-61.3%

Financial Health

Debt/Equity
CAT
2.07
CSW
0.81
Current Ratio
CAT
1.44
CSW
2.36
Quick Ratio
CAT
0.87
CSW
0.82

Dividends

Dividend Yield
CAT
0.85%
CSW
0.37%
Payout Ratio
CAT
31.05%
CSW
13.91%

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
CSW NEUTRAL

CSW exhibits strong operational health with a Piotroski F-Score of 7/9, indicating a robust financial foundation. However, there is a severe valuation disconnect, as the current price of $296.18 trades at a massive premium to both the Graham Number ($104.91) and the growth-based Intrinsic Value ($52.85). While revenue growth remains strong at 20.30%, the company is facing a significant earnings collapse (-61.30% YoY), which is not yet reflected in the current valuation. The combination of bearish insider selling and a 0/100 technical trend offsets the bullish analyst consensus.

Strengths
Strong Piotroski F-Score (7/9) indicating high financial health
Robust top-line revenue growth of 20.30% YoY
Healthy liquidity with a Current Ratio of 2.36
Risks
Severe earnings contraction (-61.30% YoY)
Extreme overvaluation relative to defensive fair value (Graham Number)
Bearish insider activity with multiple sales by the CEO and officers

Compare Another Pair

CAT vs CSW: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and CSW Industrials, Inc. (CSW) 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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