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CAT vs HEI-A

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
HEI-A
HEICO Corporation
NEUTRAL
Price
$205.52
Market Cap
$28.67B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
HEI-A
40.62
Forward P/E
CAT
26.48
HEI-A
47.68
P/B Ratio
CAT
16.05
HEI-A
6.36
P/S Ratio
CAT
5.09
HEI-A
6.19
EV/EBITDA
CAT
26.1
HEI-A
24.88

Profitability

Gross Margin
CAT
28.79%
HEI-A
39.62%
Operating Margin
CAT
16.02%
HEI-A
22.24%
Profit Margin
CAT
13.14%
HEI-A
15.38%
ROE
CAT
43.53%
HEI-A
16.57%
ROA
CAT
7.89%
HEI-A
7.85%

Growth

Revenue Growth
CAT
18.0%
HEI-A
14.4%
Earnings Growth
CAT
-11.4%
HEI-A
12.5%

Financial Health

Debt/Equity
CAT
2.07
HEI-A
0.5
Current Ratio
CAT
1.44
HEI-A
3.06
Quick Ratio
CAT
0.87
HEI-A
1.27

Dividends

Dividend Yield
CAT
0.85%
HEI-A
0.12%
Payout Ratio
CAT
31.05%
HEI-A
4.75%

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
HEI-A NEUTRAL

HEI-A exhibits strong fundamental health with a Piotroski F-Score of 7/9 and a robust current ratio of 3.06, indicating a high-quality balance sheet. However, the stock is significantly overvalued relative to its Graham Number ($60.64) and growth-based intrinsic value ($130.29), trading at a steep premium with a P/E of 40.62. While long-term growth in the Aerospace & Defense sector remains a tailwind, the current technical trend is bearish (0/100) and the forward P/E is expanding, suggesting a potential valuation correction.

Strengths
Strong financial health (Piotroski F-Score 7/9)
Excellent liquidity with a Current Ratio of 3.06
Low leverage with a Debt/Equity ratio of 0.50
Risks
Severe valuation premium over intrinsic and Graham values
Bearish technical momentum (0/100 trend score, -16.6% 6-month return)
Forward P/E (47.68) is higher than trailing P/E, suggesting slowing earnings growth relative to price

Compare Another Pair

CAT vs HEI-A: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and HEICO Corporation (HEI-A) 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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