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CAT vs HWM

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
HWM
Howmet Aerospace Inc.
NEUTRAL
Price
$241.70
Market Cap
$96.91B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
HWM
65.32
Forward P/E
CAT
26.48
HWM
43.04
P/B Ratio
CAT
16.05
HWM
18.13
P/S Ratio
CAT
5.09
HWM
11.74
EV/EBITDA
CAT
26.1
HWM
41.62

Profitability

Gross Margin
CAT
28.79%
HWM
34.17%
Operating Margin
CAT
16.02%
HWM
26.34%
Profit Margin
CAT
13.14%
HWM
18.27%
ROE
CAT
43.53%
HWM
30.44%
ROA
CAT
7.89%
HWM
12.13%

Growth

Revenue Growth
CAT
18.0%
HWM
14.6%
Earnings Growth
CAT
-11.4%
HWM
20.3%

Financial Health

Debt/Equity
CAT
2.07
HWM
0.6
Current Ratio
CAT
1.44
HWM
2.13
Quick Ratio
CAT
0.87
HWM
0.87

Dividends

Dividend Yield
CAT
0.85%
HWM
0.2%
Payout Ratio
CAT
31.05%
HWM
11.86%

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
HWM NEUTRAL

HWM exhibits a stable but mediocre Piotroski F-Score of 4/9, indicating a lack of strong momentum in financial health despite exceptional operational performance. The stock trades at a massive premium to its Graham Number ($33.31) and Intrinsic Value ($109.15), though a PEG ratio of 0.80 suggests that high growth expectations are partially justified. While the earnings track record is nearly flawless over 25 quarters, bearish insider selling and a weak technical trend (10/100) create significant short-term headwinds. The disconnect between the 'Strong Buy' analyst consensus and the deterministic value scores suggests a high-risk growth play rather than a value investment.

Strengths
Exceptional earnings consistency with beats in 3 of the last 4 quarters and a long-term track record of surprises
Strong profitability metrics including an ROE of 30.44% and Operating Margin of 26.34%
Robust growth profile with 20.30% YoY earnings growth and a PEG ratio below 1.0
Risks
Severe valuation premium with a P/E of 65.32 and Price/Book of 18.13
Bearish insider sentiment with $11.62M in net selling by officers
Weak technical trend (10/100) suggesting a potential price correction or consolidation

Compare Another Pair

CAT vs HWM: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Howmet Aerospace Inc. (HWM) 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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