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CAT vs KBR

CAT
Caterpillar Inc.
BEARISH
Price
$810.05
Market Cap
$376.91B
Sector
Industrials
AI Confidence
85%
KBR
KBR, Inc.
NEUTRAL
Price
$36.00
Market Cap
$4.56B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
43.11
KBR
10.32
Forward P/E
CAT
28.95
KBR
8.57
P/B Ratio
CAT
17.68
KBR
3.03
P/S Ratio
CAT
5.58
KBR
0.59
EV/EBITDA
CAT
29.48
KBR
10.15

Profitability

Gross Margin
CAT
28.79%
KBR
14.77%
Operating Margin
CAT
16.02%
KBR
7.64%
Profit Margin
CAT
13.14%
KBR
5.33%
ROE
CAT
43.53%
KBR
30.75%
ROA
CAT
7.89%
KBR
5.36%

Growth

Revenue Growth
CAT
18.0%
KBR
-10.6%
Earnings Growth
CAT
-11.4%
KBR
52.4%

Financial Health

Debt/Equity
CAT
2.07
KBR
1.92
Current Ratio
CAT
1.44
KBR
1.22
Quick Ratio
CAT
0.87
KBR
1.14

Dividends

Dividend Yield
CAT
0.74%
KBR
1.83%
Payout Ratio
CAT
31.05%
KBR
18.91%

AI Verdict

CAT BEARISH

Caterpillar exhibits a stable but mediocre Piotroski F-Score of 4/9, indicating a lack of strong financial momentum. The stock is trading at a massive premium, with a current price of $810.05 dwarfing both the Graham Number ($139.18) and the Intrinsic Value ($131.53). While revenue growth remains robust at 18%, the divergence into negative earnings growth (-11.4%) suggests significant margin compression or rising costs. Combined with bearish insider selling and a technical trend score of 10/100, the current valuation appears unsustainable.

Strengths
Exceptional Return on Equity (ROE) of 43.53%
Strong top-line revenue growth of 18% YoY
Healthy gross margins (28.79%) and operating margins (16.02%)
Risks
Extreme overvaluation relative to book value (P/B 17.68) and Graham Number
Negative earnings growth (-11.4% YoY) despite increasing revenue
High leverage with a Debt/Equity ratio of 2.07
KBR NEUTRAL

KBR presents a complex profile with a Piotroski F-Score of 4/9, indicating stable but not strong financial health. While the company is fundamentally undervalued from a growth perspective (PEG 0.49) and maintains a high ROE of 30.75%, it is currently battling a significant divergence between shrinking revenues (-10.60% YoY) and expanding earnings. The wide gap between the Graham Number ($30.55) and the Intrinsic Value ($102.96) suggests a conflict between its defensive floor and its growth potential, while the technical trend remains heavily bearish.

Strengths
Highly attractive valuation with a P/E of 10.32 and a Forward P/E of 8.57
Exceptional PEG ratio of 0.49, suggesting significant undervaluation relative to earnings growth
Strong Return on Equity (ROE) of 30.75%
Risks
Negative revenue growth (-10.60% YoY and -11.17% Q/Q) indicating a contraction in top-line business
High leverage with a Debt/Equity ratio of 1.92
Severe bearish technical momentum with a 1-year price decline of 30.9%

Compare Another Pair

CAT vs KBR: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and KBR, Inc. (KBR) 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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