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CAT vs DLB

CAT
Caterpillar Inc.
BEARISH
Price
$810.05
Market Cap
$376.91B
Sector
Industrials
AI Confidence
85%
DLB
Dolby Laboratories, Inc.
NEUTRAL
Price
$63.26
Market Cap
$6.04B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
43.11
DLB
25.61
Forward P/E
CAT
28.95
DLB
13.72
P/B Ratio
CAT
17.68
DLB
2.33
P/S Ratio
CAT
5.58
DLB
4.51
EV/EBITDA
CAT
29.48
DLB
15.26

Profitability

Gross Margin
CAT
28.79%
DLB
87.86%
Operating Margin
CAT
16.02%
DLB
20.95%
Profit Margin
CAT
13.14%
DLB
17.96%
ROE
CAT
43.53%
DLB
9.46%
ROA
CAT
7.89%
DLB
5.27%

Growth

Revenue Growth
CAT
18.0%
DLB
-2.9%
Earnings Growth
CAT
-11.4%
DLB
-21.4%

Financial Health

Debt/Equity
CAT
2.07
DLB
0.02
Current Ratio
CAT
1.44
DLB
3.17
Quick Ratio
CAT
0.87
DLB
2.74

Dividends

Dividend Yield
CAT
0.74%
DLB
2.18%
Payout Ratio
CAT
31.05%
DLB
54.66%

AI Verdict

CAT BEARISH

Caterpillar exhibits a stable but mediocre Piotroski F-Score of 4/9, indicating a lack of strong financial momentum. The stock is trading at a massive premium, with a current price of $810.05 dwarfing both the Graham Number ($139.18) and the Intrinsic Value ($131.53). While revenue growth remains robust at 18%, the divergence into negative earnings growth (-11.4%) suggests significant margin compression or rising costs. Combined with bearish insider selling and a technical trend score of 10/100, the current valuation appears unsustainable.

Strengths
Exceptional Return on Equity (ROE) of 43.53%
Strong top-line revenue growth of 18% YoY
Healthy gross margins (28.79%) and operating margins (16.02%)
Risks
Extreme overvaluation relative to book value (P/B 17.68) and Graham Number
Negative earnings growth (-11.4% YoY) despite increasing revenue
High leverage with a Debt/Equity ratio of 2.07
DLB NEUTRAL

DLB exhibits a dichotomy between exceptional financial health and poor growth momentum. The Piotroski F-Score of 8/9 indicates a very strong balance sheet with minimal debt (D/E 0.02) and high liquidity, yet the stock trades at a significant premium to its Graham Number ($38.84) and Intrinsic Value ($17.29). While the company maintains an elite gross margin of 87.86%, negative YoY revenue and earnings growth, coupled with bearish insider activity and a 0/100 technical trend, offset the strong fundamental health.

Strengths
Exceptional balance sheet health (Piotroski 8/9)
Elite gross margins (87.86%) reflecting strong IP moat
Virtually debt-free (Debt/Equity 0.02)
Risks
Negative YoY revenue growth (-2.90%) and earnings growth (-21.40%)
Significant overvaluation relative to Graham and Intrinsic value formulas
Bearish insider sentiment with heavy selling by the CEO and officers

Compare Another Pair

CAT vs DLB: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Dolby Laboratories, Inc. (DLB) 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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