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CAT vs GNRC

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
GNRC
Generac Holdings Inc.
BEARISH
Price
$220.30
Market Cap
$12.93B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
GNRC
81.9
Forward P/E
CAT
26.48
GNRC
21.1
P/B Ratio
CAT
16.05
GNRC
4.91
P/S Ratio
CAT
5.09
GNRC
3.07
EV/EBITDA
CAT
26.1
GNRC
28.88

Profitability

Gross Margin
CAT
28.79%
GNRC
38.29%
Operating Margin
CAT
16.02%
GNRC
-0.85%
Profit Margin
CAT
13.14%
GNRC
3.79%
ROE
CAT
43.53%
GNRC
6.28%
ROA
CAT
7.89%
GNRC
3.38%

Growth

Revenue Growth
CAT
18.0%
GNRC
-11.6%
Earnings Growth
CAT
-11.4%
GNRC
--

Financial Health

Debt/Equity
CAT
2.07
GNRC
0.52
Current Ratio
CAT
1.44
GNRC
2.03
Quick Ratio
CAT
0.87
GNRC
0.78

Dividends

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

GNRC exhibits a severe disconnect between its current market price ($220.30) and its deterministic value markers, with a Piotroski F-Score of 4/9 indicating only stable health and a Graham Number of $52.11 suggesting massive overvaluation. While the balance sheet remains healthy with low debt and a strong current ratio, the company is facing significant headwinds including negative revenue growth (-11.60%) and a plummeting YoY EPS (-42.5%). The bearish sentiment is further reinforced by aggressive insider selling from the CEO and CFO and a very weak technical trend (10/100). Despite bullish analyst targets, the fundamental data suggests the stock is trading on speculative recovery rather than current performance.

Strengths
Strong liquidity with a Current Ratio of 2.03
Manageable leverage with Debt/Equity at 0.52
Healthy Gross Margin of 38.29%
Risks
Extreme valuation gap compared to Graham Number ($52.11) and Intrinsic Value ($18.83)
Negative revenue growth (-11.60% YoY) and severe EPS contraction (-42.5% YoY)
Negative operating margin (-0.85%) indicating inefficiency in core operations

Compare Another Pair

CAT vs GNRC: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Generac Holdings Inc. (GNRC) 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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