No connection

Search Results

CAT vs DNOW

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
DNOW
DNOW Inc.
NEUTRAL
Price
$12.71
Market Cap
$2.36B
Sector
Industrials
AI Confidence
80%

Valuation

P/E Ratio
CAT
39.01
DNOW
--
Forward P/E
CAT
26.48
DNOW
12.46
P/B Ratio
CAT
16.05
DNOW
1.06
P/S Ratio
CAT
5.09
DNOW
0.84
EV/EBITDA
CAT
26.1
DNOW
16.51

Profitability

Gross Margin
CAT
28.79%
DNOW
21.74%
Operating Margin
CAT
16.02%
DNOW
1.15%
Profit Margin
CAT
13.14%
DNOW
-3.16%
ROE
CAT
43.53%
DNOW
-5.23%
ROA
CAT
7.89%
DNOW
2.68%

Growth

Revenue Growth
CAT
18.0%
DNOW
68.0%
Earnings Growth
CAT
-11.4%
DNOW
--

Financial Health

Debt/Equity
CAT
2.07
DNOW
0.27
Current Ratio
CAT
1.44
DNOW
2.34
Quick Ratio
CAT
0.87
DNOW
1.07

Dividends

Dividend Yield
CAT
0.85%
DNOW
--
Payout Ratio
CAT
31.05%
DNOW
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
DNOW NEUTRAL

DNOW presents a contradictory profile characterized by a very weak Piotroski F-Score of 2/9, indicating deteriorating fundamental health, despite a strong balance sheet with low debt (D/E 0.27) and high liquidity (Current Ratio 2.34). While revenue growth is explosive at 68% YoY, this has not translated to the bottom line, as evidenced by a -40% YoY decline in EPS and negative profit margins. The stock is trading near book value (P/B 1.06) and is viewed as a 'Strong Buy' by analysts, but the bearish technical trend and poor deterministic health scores suggest significant execution risk.

Strengths
Exceptional YoY revenue growth of 68%
Strong liquidity position with a Current Ratio of 2.34
Low leverage with a Debt/Equity ratio of 0.27
Risks
Severe fundamental weakness indicated by a Piotroski F-Score of 2/9
Negative net profit margins (-3.16%) despite massive revenue growth
Significant divergence between revenue growth (+68%) and EPS growth (-40%)

Compare Another Pair

CAT vs DNOW: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and DNOW Inc. (DNOW) 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.

Home
Terminal
AI Chat
Markets
Profile