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CAT vs FPS

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
FPS
Forgent Power Solutions, Inc.
NEUTRAL
Price
$35.14
Market Cap
$8.58B
Sector
Industrials
AI Confidence
75%

Valuation

P/E Ratio
CAT
39.01
FPS
--
Forward P/E
CAT
26.48
FPS
34.34
P/B Ratio
CAT
16.05
FPS
21.27
P/S Ratio
CAT
5.09
FPS
8.55
EV/EBITDA
CAT
26.1
FPS
62.47

Profitability

Gross Margin
CAT
28.79%
FPS
34.64%
Operating Margin
CAT
16.02%
FPS
6.78%
Profit Margin
CAT
13.14%
FPS
1.45%
ROE
CAT
43.53%
FPS
--
ROA
CAT
7.89%
FPS
--

Growth

Revenue Growth
CAT
18.0%
FPS
69.0%
Earnings Growth
CAT
-11.4%
FPS
--

Financial Health

Debt/Equity
CAT
2.07
FPS
1.2
Current Ratio
CAT
1.44
FPS
1.67
Quick Ratio
CAT
0.87
FPS
1.03

Dividends

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

FPS presents a high-risk, high-reward profile characterized by a stable but mediocre Piotroski F-Score of 4/9 and missing Altman Z-Score data. While the company exhibits explosive YoY revenue growth of 69% and an attractive PEG ratio of 0.40, these are heavily offset by a catastrophic -94.60% Q/Q earnings decline and razor-thin profit margins of 1.45%. Massive insider selling totaling over $1.2 billion and a bearish technical trend (10/100) contrast sharply with the 'Strong Buy' analyst consensus, suggesting a significant disconnect between institutional targets and internal sentiment.

Strengths
Exceptional YoY revenue growth of 69.00%
Very low PEG ratio (0.40) suggesting growth is undervalued relative to price
Healthy liquidity with a Current Ratio of 1.67
Risks
Severe Q/Q earnings collapse of -94.60%
Extreme valuation premium indicated by a Price/Book ratio of 21.27
Heavy insider liquidation ($1.246B in sales)

Compare Another Pair

CAT vs FPS: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Forgent Power Solutions, Inc. (FPS) 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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