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CAT vs GHM

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
GHM
Graham Corporation
BEARISH
Price
$94.66
Market Cap
$1.05B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
GHM
70.12
Forward P/E
CAT
26.48
GHM
47.57
P/B Ratio
CAT
16.05
GHM
7.92
P/S Ratio
CAT
5.09
GHM
4.41
EV/EBITDA
CAT
26.1
GHM
43.71

Profitability

Gross Margin
CAT
28.79%
GHM
24.63%
Operating Margin
CAT
16.02%
GHM
7.02%
Profit Margin
CAT
13.14%
GHM
6.28%
ROE
CAT
43.53%
GHM
12.15%
ROA
CAT
7.89%
GHM
3.79%

Growth

Revenue Growth
CAT
18.0%
GHM
20.5%
Earnings Growth
CAT
-11.4%
GHM
78.6%

Financial Health

Debt/Equity
CAT
2.07
GHM
0.05
Current Ratio
CAT
1.44
GHM
1.06
Quick Ratio
CAT
0.87
GHM
0.72

Dividends

Dividend Yield
CAT
0.85%
GHM
--
Payout Ratio
CAT
31.05%
GHM
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
GHM BEARISH

GHM exhibits a severe disconnect between its market price ($94.66) and its deterministic value, with a Piotroski F-Score of 3/9 indicating weak operational health and a Graham Number of $19.05 suggesting extreme overvaluation. While the company shows explosive earnings growth (78.6% YoY) and maintains a very low debt-to-equity ratio (0.05), the valuation metrics (P/E 70.12, PEG 2.77) are unsustainable. The bearish technical trend (10/100) combined with a low quick ratio (0.72) suggests the stock is priced for perfection and vulnerable to a significant correction.

Strengths
Exceptional earnings growth (78.6% YoY)
Strong revenue growth (20.5% YoY)
Negligible debt levels (Debt/Equity 0.05)
Risks
Extreme valuation premium over intrinsic and Graham values
Weak operational health as indicated by Piotroski F-Score (3/9)
Poor short-term liquidity (Quick Ratio 0.72)

Compare Another Pair

CAT vs GHM: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Graham Corporation (GHM) 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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