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CAT vs HON

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
HON
Honeywell International Inc.
BEARISH
Price
$219.97
Market Cap
$139.38B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
HON
31.74
Forward P/E
CAT
26.48
HON
19.18
P/B Ratio
CAT
16.05
HON
10.05
P/S Ratio
CAT
5.09
HON
3.72
EV/EBITDA
CAT
26.1
HON
19.32

Profitability

Gross Margin
CAT
28.79%
HON
36.93%
Operating Margin
CAT
16.02%
HON
15.41%
Profit Margin
CAT
13.14%
HON
12.63%
ROE
CAT
43.53%
HON
26.14%
ROA
CAT
7.89%
HON
5.95%

Growth

Revenue Growth
CAT
18.0%
HON
-3.3%
Earnings Growth
CAT
-11.4%
HON
-76.4%

Financial Health

Debt/Equity
CAT
2.07
HON
2.37
Current Ratio
CAT
1.44
HON
1.3
Quick Ratio
CAT
0.87
HON
0.88

Dividends

Dividend Yield
CAT
0.85%
HON
2.16%
Payout Ratio
CAT
31.05%
HON
65.99%

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
HON BEARISH

Honeywell exhibits a stable but mediocre Piotroski F-Score of 4/9, while its current price of $219.97 represents a massive premium over its Graham Number ($58.42) and Intrinsic Value ($48.51). Despite a stellar 25-quarter track record of earnings beats, the company is currently facing a severe growth crisis with YoY earnings plummeting by 76.40% and Q/Q revenue dropping 32%. High leverage (Debt/Equity 2.37) and bearish insider activity further compound the risk of a significant price correction.

Strengths
Exceptional earnings track record with consistent beats over 25 quarters
Strong Return on Equity (ROE) of 26.14%
Healthy gross margins at 36.93%
Risks
Extreme overvaluation relative to Graham Number and Intrinsic Value
Severe contraction in growth metrics (YoY Earnings -76.40%)
High financial leverage with a Debt/Equity ratio of 2.37

Compare Another Pair

CAT vs HON: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Honeywell International Inc. (HON) 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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