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CAT vs GRC

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
GRC
The Gorman-Rupp Company
NEUTRAL
Price
$75.96
Market Cap
$2.0B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
GRC
33.91
Forward P/E
CAT
26.48
GRC
25.71
P/B Ratio
CAT
16.05
GRC
4.7
P/S Ratio
CAT
5.09
GRC
2.88
EV/EBITDA
CAT
26.1
GRC
17.5

Profitability

Gross Margin
CAT
28.79%
GRC
31.49%
Operating Margin
CAT
16.02%
GRC
15.56%
Profit Margin
CAT
13.14%
GRC
8.45%
ROE
CAT
43.53%
GRC
14.54%
ROA
CAT
7.89%
GRC
7.39%

Growth

Revenue Growth
CAT
18.0%
GRC
7.7%
Earnings Growth
CAT
-11.4%
GRC
46.6%

Financial Health

Debt/Equity
CAT
2.07
GRC
0.69
Current Ratio
CAT
1.44
GRC
2.93
Quick Ratio
CAT
0.87
GRC
1.62

Dividends

Dividend Yield
CAT
0.85%
GRC
1.0%
Payout Ratio
CAT
31.05%
GRC
33.48%

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
GRC NEUTRAL

GRC exhibits strong fundamental health with a Piotroski F-Score of 7/9 and excellent liquidity (Current Ratio 2.93), though an Altman Z-Score was not provided. While earnings growth is explosive at 46.6% YoY, the stock is trading at a significant premium to its Graham Number ($28.54) and above its growth-based intrinsic value ($66.08). The massive 1-year price surge of 117% has pushed the valuation to a point where the PEG ratio (2.55) suggests the stock is overextended. Consequently, while the business is high-quality, the current entry point is risky.

Strengths
Strong financial health indicated by a Piotroski F-Score of 7/9
Explosive earnings growth (46.6% YoY and 47.1% Q/Q)
Robust liquidity position with a Current Ratio of 2.93 and Quick Ratio of 1.62
Risks
Significant valuation premium over Graham Number ($28.54) and Intrinsic Value ($66.08)
High PEG ratio (2.55) indicating price is growing faster than earnings
Technical overextension with the price ($75.96) trading very close to the 52-week high ($78.50)

Compare Another Pair

CAT vs GRC: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and The Gorman-Rupp Company (GRC) 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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