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CAT vs FAST

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
FAST
Fastenal Company
NEUTRAL
Price
$40.45
Market Cap
$46.78B
Sector
Industrials
AI Confidence
72%

Valuation

P/E Ratio
CAT
39.01
FAST
38.16
Forward P/E
CAT
26.48
FAST
18.47
P/B Ratio
CAT
16.05
FAST
11.93
P/S Ratio
CAT
5.09
FAST
5.85
EV/EBITDA
CAT
26.1
FAST
25.99

Profitability

Gross Margin
CAT
28.79%
FAST
45.15%
Operating Margin
CAT
16.02%
FAST
20.7%
Profit Margin
CAT
13.14%
FAST
15.34%
ROE
CAT
43.53%
FAST
32.74%
ROA
CAT
7.89%
FAST
20.5%

Growth

Revenue Growth
CAT
18.0%
FAST
11.7%
Earnings Growth
CAT
-11.4%
FAST
11.5%

Financial Health

Debt/Equity
CAT
2.07
FAST
0.13
Current Ratio
CAT
1.44
FAST
4.26
Quick Ratio
CAT
0.87
FAST
1.96

Dividends

Dividend Yield
CAT
0.85%
FAST
2.18%
Payout Ratio
CAT
31.05%
FAST
79.81%

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
FAST NEUTRAL

Fastenal Company trades at a premium valuation with solid profitability and financial health, but recent price underperformance and mixed earnings execution temper near-term upside. The stock's P/E of 38.16 is well above sector average (31.89) and close peers like NSC and PCAR, though justified somewhat by superior ROE (32.74%) and disciplined capital structure (Debt/Equity: 0.13). Revenue and earnings growth remain healthy at ~11.7% and 11.5% YoY, but insider selling worth $10.16M over the past six months raises caution. Analysts are tepid with a 'hold' consensus and a $43.46 target implying only 7.4% upside, while the dividend yield of 2.18% offers modest support.

Strengths
Exceptional profitability with ROE of 32.74% vs sector avg of 31.90% and peer CPRT at 18.48%
Strong balance sheet: Debt/Equity of 0.13 vs sector average of 1.44, indicating conservative leverage
High gross margin of 45.15%, reflecting pricing power and efficient supply chain in industrial distribution
Risks
Elevated valuation: P/E of 38.16 vs sector avg 31.89 and forward P/E of 18.47 suggesting limited near-term multiple expansion
Recent insider selling: $10.16M in sales by executives including CEO and President signals lack of confidence
High payout ratio of 79.81% leaves little room for dividend growth or reinvestment during downturns

Compare Another Pair

CAT vs FAST: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Fastenal Company (FAST) 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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