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CAT vs DCO

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
DCO
Ducommun Incorporated
NEUTRAL
Price
$139.41
Market Cap
$2.09B
Sector
Industrials
AI Confidence
80%

Valuation

P/E Ratio
CAT
39.01
DCO
--
Forward P/E
CAT
26.48
DCO
26.61
P/B Ratio
CAT
16.05
DCO
3.15
P/S Ratio
CAT
5.09
DCO
2.53
EV/EBITDA
CAT
26.1
DCO
21.54

Profitability

Gross Margin
CAT
28.79%
DCO
26.87%
Operating Margin
CAT
16.02%
DCO
10.31%
Profit Margin
CAT
13.14%
DCO
-4.12%
ROE
CAT
43.53%
DCO
-5.05%
ROA
CAT
7.89%
DCO
4.17%

Growth

Revenue Growth
CAT
18.0%
DCO
9.4%
Earnings Growth
CAT
-11.4%
DCO
6.8%

Financial Health

Debt/Equity
CAT
2.07
DCO
0.52
Current Ratio
CAT
1.44
DCO
3.5
Quick Ratio
CAT
0.87
DCO
2.36

Dividends

Dividend Yield
CAT
0.85%
DCO
--
Payout Ratio
CAT
31.05%
DCO
0.0%

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
DCO NEUTRAL

DCO presents a stark contrast between operational momentum and fundamental financial health, highlighted by a weak Piotroski F-Score of 3/9. While the company boasts an exceptional earnings beat track record and strong liquidity (Current Ratio 3.50), the negative net profit margin (-4.11%) and negative ROE (-5.05%) are significant concerns. The stock has experienced a massive 147% rally over the last year, pushing it near its 52-week high, yet insider sentiment is bearish with significant selling by the CFO and Directors. The disconnect between the 'Strong Buy' analyst consensus and the deteriorating deterministic health scores suggests the current price is driven by growth expectations rather than current financial stability.

Strengths
Exceptional earnings track record with consistent beats over 25 quarters
Very strong liquidity position with a Current Ratio of 3.50 and Quick Ratio of 2.36
Low leverage with a Debt/Equity ratio of 0.52
Risks
Weak financial health as indicated by a Piotroski F-Score of 3/9
Negative net profit margin (-4.11%) and negative ROE (-5.05%)
Bearish insider activity with $4.7M in sales, including CFO and Directors

Compare Another Pair

CAT vs DCO: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Ducommun Incorporated (DCO) 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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