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CAT vs GD

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
GD
General Dynamics Corporation
NEUTRAL
Price
$313.21
Market Cap
$84.83B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
GD
20.29
Forward P/E
CAT
26.48
GD
17.43
P/B Ratio
CAT
16.05
GD
3.3
P/S Ratio
CAT
5.09
GD
1.61
EV/EBITDA
CAT
26.1
GD
14.51

Profitability

Gross Margin
CAT
28.79%
GD
15.13%
Operating Margin
CAT
16.02%
GD
10.14%
Profit Margin
CAT
13.14%
GD
8.01%
ROE
CAT
43.53%
GD
17.66%
ROA
CAT
7.89%
GD
5.99%

Growth

Revenue Growth
CAT
18.0%
GD
7.8%
Earnings Growth
CAT
-11.4%
GD
0.4%

Financial Health

Debt/Equity
CAT
2.07
GD
0.38
Current Ratio
CAT
1.44
GD
1.44
Quick Ratio
CAT
0.87
GD
0.78

Dividends

Dividend Yield
CAT
0.85%
GD
1.94%
Payout Ratio
CAT
31.05%
GD
38.83%

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
GD NEUTRAL

General Dynamics presents a dichotomy between fundamental stability and valuation extremes. While the Piotroski F-Score of 4/9 indicates stable financial health and the Debt/Equity ratio (0.38) is exceptionally low, the stock is trading at a significant premium to both its Graham Number ($181.57) and Intrinsic Value ($117.34). Stagnant earnings growth (0.40% YoY) and bearish insider activity, including sales by the CEO, offset the positive analyst consensus and long-term price performance.

Strengths
Very low Debt/Equity ratio (0.38) indicating strong solvency
Strong Return on Equity (ROE) of 17.66%
Consistent earnings track record with 3/4 beats in the last year
Risks
Significant overvaluation relative to Graham and Intrinsic value baselines
Stagnant earnings growth (0.40% YoY) failing to justify current P/E
Bearish insider sentiment with $17.93M in net sales, including CEO activity

Compare Another Pair

CAT vs GD: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and General Dynamics Corporation (GD) 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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