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CAT vs FLS

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
FLS
Flowserve Corporation
NEUTRAL
Price
$83.22
Market Cap
$10.64B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
FLS
31.52
Forward P/E
CAT
26.48
FLS
17.88
P/B Ratio
CAT
16.05
FLS
4.82
P/S Ratio
CAT
5.09
FLS
2.25
EV/EBITDA
CAT
26.1
FLS
15.93

Profitability

Gross Margin
CAT
28.79%
FLS
34.59%
Operating Margin
CAT
16.02%
FLS
14.35%
Profit Margin
CAT
13.14%
FLS
7.32%
ROE
CAT
43.53%
FLS
17.18%
ROA
CAT
7.89%
FLS
7.09%

Growth

Revenue Growth
CAT
18.0%
FLS
3.5%
Earnings Growth
CAT
-11.4%
FLS
--

Financial Health

Debt/Equity
CAT
2.07
FLS
0.78
Current Ratio
CAT
1.44
FLS
2.03
Quick Ratio
CAT
0.87
FLS
1.41

Dividends

Dividend Yield
CAT
0.85%
FLS
1.06%
Payout Ratio
CAT
31.05%
FLS
31.82%

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
FLS NEUTRAL

FLS exhibits stable financial health with a Piotroski F-Score of 6/9 and strong liquidity ratios, but it is currently trading at a severe valuation premium. The current price of $83.22 significantly exceeds both the Graham Number ($32.01) and the growth-based Intrinsic Value ($18.48). While explosive YoY EPS growth (+88.1%) and consistent earnings beats support a bullish analyst consensus, this is countered by bearish insider selling and a very weak technical trend (10/100). The stock appears to be priced for perfection, leaving little margin for error despite strong operational performance.

Strengths
Explosive Year-over-Year EPS growth of 88.1%
Strong earnings track record with 3 of the last 4 quarters beating estimates
Healthy liquidity position with a Current Ratio of 2.03
Risks
Extreme valuation gap between current price and deterministic fair value (Graham/Intrinsic)
Bearish insider sentiment with net selling and zero buy transactions
Very weak technical trend score (10/100) suggesting bearish momentum

Compare Another Pair

CAT vs FLS: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Flowserve Corporation (FLS) 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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