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CAT vs ESAB

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
ESAB
ESAB Corporation
NEUTRAL
Price
$101.28
Market Cap
$6.17B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
ESAB
24.7
Forward P/E
CAT
26.48
ESAB
15.79
P/B Ratio
CAT
16.05
ESAB
2.84
P/S Ratio
CAT
5.09
ESAB
2.17
EV/EBITDA
CAT
26.1
ESAB
13.35

Profitability

Gross Margin
CAT
28.79%
ESAB
36.88%
Operating Margin
CAT
16.02%
ESAB
16.8%
Profit Margin
CAT
13.14%
ESAB
7.98%
ROE
CAT
43.53%
ESAB
12.89%
ROA
CAT
7.89%
ESAB
6.63%

Growth

Revenue Growth
CAT
18.0%
ESAB
7.5%
Earnings Growth
CAT
-11.4%
ESAB
-31.6%

Financial Health

Debt/Equity
CAT
2.07
ESAB
0.61
Current Ratio
CAT
1.44
ESAB
1.9
Quick Ratio
CAT
0.87
ESAB
0.96

Dividends

Dividend Yield
CAT
0.85%
ESAB
0.39%
Payout Ratio
CAT
31.05%
ESAB
9.27%

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
ESAB NEUTRAL

ESAB exhibits strong operational health with a Piotroski F-Score of 7/9 and a healthy balance sheet (Debt/Equity 0.61), yet it faces a significant valuation disconnect. While the company has a remarkable track record of beating earnings estimates for 16 consecutive quarters, the current price of $101.28 trades at a substantial premium to its Graham Number ($57.36) and Intrinsic Value ($28.70). The outlook is conflicted: analysts maintain a 'strong_buy' with a target of $136.56, but technical trends are bearish (0/100) and YoY earnings growth has plummeted by 31.6%.

Strengths
Strong Piotroski F-Score (7/9) indicating high financial health
Exceptional earnings track record with 16 consecutive quarters of beats
Conservative leverage with a Debt/Equity ratio of 0.61 and Current Ratio of 1.90
Risks
Severe valuation premium relative to Graham and Intrinsic value formulas
Sharp decline in YoY earnings growth (-31.60%)
High exposure to cyclical industrial capital spending in developed markets

Compare Another Pair

CAT vs ESAB: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and ESAB Corporation (ESAB) 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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