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CAT vs GGG

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
GGG
Graco Inc.
BEARISH
Price
$80.54
Market Cap
$13.37B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
GGG
26.32
Forward P/E
CAT
26.48
GGG
23.83
P/B Ratio
CAT
16.05
GGG
4.87
P/S Ratio
CAT
5.09
GGG
5.94
EV/EBITDA
CAT
26.1
GGG
17.63

Profitability

Gross Margin
CAT
28.79%
GGG
52.31%
Operating Margin
CAT
16.02%
GGG
25.51%
Profit Margin
CAT
13.14%
GGG
22.96%
ROE
CAT
43.53%
GGG
19.78%
ROA
CAT
7.89%
GGG
12.01%

Growth

Revenue Growth
CAT
18.0%
GGG
2.2%
Earnings Growth
CAT
-11.4%
GGG
-2.8%

Financial Health

Debt/Equity
CAT
2.07
GGG
0.02
Current Ratio
CAT
1.44
GGG
3.56
Quick Ratio
CAT
0.87
GGG
2.5

Dividends

Dividend Yield
CAT
0.85%
GGG
1.47%
Payout Ratio
CAT
31.05%
GGG
36.6%

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
GGG BEARISH

Graco Inc. (GGG) exhibits a stable financial health profile with a Piotroski F-Score of 4/9 and an exceptionally clean balance sheet (Debt/Equity 0.02). However, the stock is severely overvalued, trading at $80.54 despite a Graham Number of $33.74 and an Intrinsic Value of $21.42. Growth has stalled with negative YoY earnings growth (-2.80%) and a high PEG ratio of 2.52, indicating the price is not supported by current fundamentals. Bearish insider activity and a 0/100 technical trend further signal a lack of confidence in near-term upside.

Strengths
Exceptional balance sheet with near-zero debt (Debt/Equity 0.02)
Strong profitability margins (Gross Margin 52.31%, Operating Margin 25.51%)
High liquidity with a Current Ratio of 3.56
Risks
Severe valuation gap between current price and deterministic fair value models
Negative earnings growth trend (YoY -2.80%, Q/Q -4.50%)
Consistent earnings misses (only 1 of last 4 quarters beat estimates)

Compare Another Pair

CAT vs GGG: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Graco Inc. (GGG) 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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