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CAT vs CTAS

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
CTAS
Cintas Corporation
NEUTRAL
Price
$186.72
Market Cap
$75.51B
Sector
Industrials
AI Confidence
78%

Valuation

P/E Ratio
CAT
39.01
CTAS
41.49
Forward P/E
CAT
26.48
CTAS
39.9
P/B Ratio
CAT
16.05
CTAS
15.82
P/S Ratio
CAT
5.09
CTAS
7.15
EV/EBITDA
CAT
26.1
CTAS
27.91

Profitability

Gross Margin
CAT
28.79%
CTAS
50.1%
Operating Margin
CAT
16.02%
CTAS
22.73%
Profit Margin
CAT
13.14%
CTAS
17.54%
ROE
CAT
43.53%
CTAS
42.19%
ROA
CAT
7.89%
CTAS
15.98%

Growth

Revenue Growth
CAT
18.0%
CTAS
8.7%
Earnings Growth
CAT
-11.4%
CTAS
9.1%

Financial Health

Debt/Equity
CAT
2.07
CTAS
0.56
Current Ratio
CAT
1.44
CTAS
2.24
Quick Ratio
CAT
0.87
CTAS
1.03

Dividends

Dividend Yield
CAT
0.85%
CTAS
0.96%
Payout Ratio
CAT
31.05%
CTAS
36.0%

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
CTAS NEUTRAL

Cintas Corporation (CTAS) trades at a premium valuation with strong historical profitability and consistent earnings execution, but faces headwinds from recent underperformance and elevated multiples relative to peers. The company has delivered robust ROE of 42.19% and gross margins above 50%, outperforming the industrials sector, though its P/E of 41.49 is significantly above the sector average of 31.89. Despite solid fundamentals, insider selling and a 1Y price decline of -13.1% suggest caution, while analysts maintain a Hold consensus with a 16% upside to the $216.82 target. Growth remains steady at ~9% YoY in revenue and earnings, but decelerating momentum and limited near-term catalysts constrain bullish sentiment.

Strengths
Exceptional profitability with ROE of 42.19%, significantly above sector average of 31.90%
High gross margin of 50.10% and operating margin of 22.73%, reflecting pricing power and operational efficiency
Consistent earnings beat record: 22 out of 25 quarters beat estimates, with an average surprise of 3.05% over the last four
Risks
Elevated valuation: P/E of 41.49 vs sector average of 31.89 and forward P/E of 39.90 indicating limited margin of safety
Recent insider selling: $4.96M in sales by executives including CEO, signaling potential lack of confidence at current levels
Underperforming stock price: -13.1% 1Y return vs sector peers like JCI (+41.2%) and NOC (+13.5%)

Compare Another Pair

CAT vs CTAS: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Cintas Corporation (CTAS) 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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