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CAT vs DCI

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
DCI
Donaldson Company, Inc.
BEARISH
Price
$88.96
Market Cap
$10.3B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
DCI
27.8
Forward P/E
CAT
26.48
DCI
20.35
P/B Ratio
CAT
16.05
DCI
6.54
P/S Ratio
CAT
5.09
DCI
2.75
EV/EBITDA
CAT
26.1
DCI
16.19

Profitability

Gross Margin
CAT
28.79%
DCI
34.6%
Operating Margin
CAT
16.02%
DCI
13.57%
Profit Margin
CAT
13.14%
DCI
10.09%
ROE
CAT
43.53%
DCI
24.27%
ROA
CAT
7.89%
DCI
11.8%

Growth

Revenue Growth
CAT
18.0%
DCI
3.0%
Earnings Growth
CAT
-11.4%
DCI
-1.3%

Financial Health

Debt/Equity
CAT
2.07
DCI
0.43
Current Ratio
CAT
1.44
DCI
2.29
Quick Ratio
CAT
0.87
DCI
1.31

Dividends

Dividend Yield
CAT
0.85%
DCI
1.35%
Payout Ratio
CAT
31.05%
DCI
36.56%

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
DCI BEARISH

DCI presents a stable financial health profile with a Piotroski F-Score of 4/9 and low leverage, but it is severely overvalued. The current price of $88.96 trades at a massive premium to its Graham Number ($31.29) and Intrinsic Value ($22.40). With stagnant revenue growth (3%) and negative earnings growth (-1.3%), the current P/E of 27.80 is fundamentally unsupported. Bearish insider selling and a 0/100 technical trend further suggest a lack of immediate catalyst for growth.

Strengths
Strong Return on Equity (ROE) of 24.27%
Low Debt/Equity ratio of 0.43 indicating conservative leverage
High liquidity with a Current Ratio of 2.29
Risks
Extreme valuation gap between market price and intrinsic/Graham value
Negative earnings growth (-1.30% YoY and -3.50% Q/Q)
Bearish insider activity with $3.57M in sales and zero buys

Compare Another Pair

CAT vs DCI: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Donaldson Company, Inc. (DCI) 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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