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CAT vs ITT

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
ITT
ITT Inc.
BEARISH
Price
$213.60
Market Cap
$19.19B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
ITT
34.9
Forward P/E
CAT
26.48
ITT
23.76
P/B Ratio
CAT
16.05
ITT
4.49
P/S Ratio
CAT
5.09
ITT
4.87
EV/EBITDA
CAT
26.1
ITT
20.32

Profitability

Gross Margin
CAT
28.79%
ITT
35.35%
Operating Margin
CAT
16.02%
ITT
18.85%
Profit Margin
CAT
13.14%
ITT
12.39%
ROE
CAT
43.53%
ITT
14.29%
ROA
CAT
7.89%
ITT
8.13%

Growth

Revenue Growth
CAT
18.0%
ITT
13.5%
Earnings Growth
CAT
-11.4%
ITT
6.1%

Financial Health

Debt/Equity
CAT
2.07
ITT
0.21
Current Ratio
CAT
1.44
ITT
2.58
Quick Ratio
CAT
0.87
ITT
1.96

Dividends

Dividend Yield
CAT
0.85%
ITT
0.72%
Payout Ratio
CAT
31.05%
ITT
22.98%

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
ITT BEARISH

ITT exhibits a stable financial foundation with a Piotroski F-Score of 4/9 and an exceptionally strong balance sheet (Debt/Equity 0.21), yet it is severely overvalued. The current price of $213.60 represents a massive premium over both the Graham Number ($80.92) and the Intrinsic Value ($98.84). This valuation gap, combined with a bearish technical trend (10/100) and significant insider selling by the CEO, suggests the stock is priced for perfection and susceptible to a correction.

Strengths
Very low leverage with a Debt/Equity ratio of 0.21
Strong liquidity position evidenced by a Current Ratio of 2.58
Consistent long-term earnings track record over 25 quarters
Risks
Extreme valuation premium relative to defensive fair value (Graham Number)
Bearish insider sentiment with $12.14M in recent sales, including the CEO
Technical trend is heavily bearish (10/100)

Compare Another Pair

CAT vs ITT: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and ITT Inc. (ITT) 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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