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CAT vs CSX

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
CSX
CSX Corporation
BEARISH
Price
$43.37
Market Cap
$80.67B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
CSX
28.35
Forward P/E
CAT
26.48
CSX
20.72
P/B Ratio
CAT
16.05
CSX
6.13
P/S Ratio
CAT
5.09
CSX
5.72
EV/EBITDA
CAT
26.1
CSX
15.49

Profitability

Gross Margin
CAT
28.79%
CSX
45.59%
Operating Margin
CAT
16.02%
CSX
32.73%
Profit Margin
CAT
13.14%
CSX
20.5%
ROE
CAT
43.53%
CSX
22.51%
ROA
CAT
7.89%
CSX
6.86%

Growth

Revenue Growth
CAT
18.0%
CSX
-0.9%
Earnings Growth
CAT
-11.4%
CSX
-0.4%

Financial Health

Debt/Equity
CAT
2.07
CSX
1.48
Current Ratio
CAT
1.44
CSX
0.81
Quick Ratio
CAT
0.87
CSX
0.63

Dividends

Dividend Yield
CAT
0.85%
CSX
1.29%
Payout Ratio
CAT
31.05%
CSX
33.77%

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
CSX BEARISH

CSX presents a significant valuation disconnect, with a Piotroski F-Score of 4/9 indicating only stable health and a current price of $43.37 that vastly exceeds both the Graham Number ($15.61) and Intrinsic Value ($10.71). While the company maintains strong operating margins (32.72%) and ROE (22.51%), growth has stalled with negative YoY revenue and earnings growth. The stock has experienced a massive 1-year price surge of 60.3%, yet the technical trend has shifted to heavily bearish (10/100), suggesting a potential peak. Overall, the high PEG ratio of 3.74 indicates the market is paying a steep premium for a company with stagnant growth.

Strengths
Strong operating margins at 32.72%
Robust Return on Equity (ROE) of 22.51%
Conservative dividend payout ratio of 33.77%
Risks
Severe overvaluation relative to Graham and Intrinsic value baselines
Negative YoY revenue growth (-0.90%) and earnings growth (-0.40%)
Liquidity risk indicated by a current ratio of 0.81

Compare Another Pair

CAT vs CSX: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and CSX Corporation (CSX) 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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