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CAT vs FSS

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
FSS
Federal Signal Corporation
BULLISH
Price
$116.01
Market Cap
$7.06B
Sector
Industrials
AI Confidence
80%

Valuation

P/E Ratio
CAT
39.01
FSS
28.93
Forward P/E
CAT
26.48
FSS
21.68
P/B Ratio
CAT
16.05
FSS
5.11
P/S Ratio
CAT
5.09
FSS
3.24
EV/EBITDA
CAT
26.1
FSS
17.47

Profitability

Gross Margin
CAT
28.79%
FSS
28.95%
Operating Margin
CAT
16.02%
FSS
16.08%
Profit Margin
CAT
13.14%
FSS
11.31%
ROE
CAT
43.53%
FSS
19.2%
ROA
CAT
7.89%
FSS
10.65%

Growth

Revenue Growth
CAT
18.0%
FSS
26.5%
Earnings Growth
CAT
-11.4%
FSS
24.2%

Financial Health

Debt/Equity
CAT
2.07
FSS
0.43
Current Ratio
CAT
1.44
FSS
3.02
Quick Ratio
CAT
0.87
FSS
1.26

Dividends

Dividend Yield
CAT
0.85%
FSS
0.52%
Payout Ratio
CAT
31.05%
FSS
13.97%

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
FSS BULLISH

FSS exhibits a stable financial profile with a Piotroski F-Score of 4/9 and a current price ($116.01) trading almost exactly at its growth-based intrinsic value ($118.29). The company demonstrates exceptional operational momentum with 26.5% YoY revenue growth and a remarkable 25-quarter track record of earnings beats. While the Graham Number suggests a significant defensive discount, the market is pricing in high growth expectations supported by a strong ROE of 19.2% and a very healthy balance sheet. Despite bearish technicals and recent insider selling, the fundamental growth trajectory and analyst consensus remain strongly positive.

Strengths
Exceptional earnings consistency with beats in nearly every quarter over the last 25 periods
Strong top-line and bottom-line growth (Revenue +26.5%, Earnings +24.2% YoY)
Robust liquidity position with a Current Ratio of 3.02
Risks
Bearish technical trend (0/100) suggesting short-term price pressure
Significant insider selling by the COO ($5.71M)
High valuation relative to book value (P/B of 5.11)

Compare Another Pair

CAT vs FSS: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Federal Signal Corporation (FSS) 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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