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CAT vs LECO

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
LECO
Lincoln Electric Holdings, Inc.
NEUTRAL
Price
$256.26
Market Cap
$14.05B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
LECO
27.47
Forward P/E
CAT
26.48
LECO
21.61
P/B Ratio
CAT
16.05
LECO
9.56
P/S Ratio
CAT
5.09
LECO
3.32
EV/EBITDA
CAT
26.1
LECO
18.64

Profitability

Gross Margin
CAT
28.79%
LECO
36.34%
Operating Margin
CAT
16.02%
LECO
17.01%
Profit Margin
CAT
13.14%
LECO
12.3%
ROE
CAT
43.53%
LECO
37.22%
ROA
CAT
7.89%
LECO
12.17%

Growth

Revenue Growth
CAT
18.0%
LECO
5.5%
Earnings Growth
CAT
-11.4%
LECO
-0.3%

Financial Health

Debt/Equity
CAT
2.07
LECO
0.92
Current Ratio
CAT
1.44
LECO
1.82
Quick Ratio
CAT
0.87
LECO
0.97

Dividends

Dividend Yield
CAT
0.85%
LECO
1.23%
Payout Ratio
CAT
31.05%
LECO
32.62%

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
LECO NEUTRAL

LECO exhibits strong fundamental health with a Piotroski F-Score of 7/9 and an exceptional ROE of 37.22%, indicating high operational efficiency. However, the stock is trading at a massive premium, with a current price of $256.26 far exceeding both the Graham Number ($75.01) and the growth-based Intrinsic Value ($65.31). While analyst sentiment remains bullish with a target of $290.44, this is contradicted by bearish insider selling and a 0/100 technical trend. The company is a high-quality industrial performer currently priced for perfection, leaving little margin of safety.

Strengths
Strong financial health evidenced by a Piotroski F-Score of 7/9
Exceptional Return on Equity (ROE) of 37.22%
Consistent track record of beating earnings estimates over 25 quarters
Risks
Severe valuation gap between current price and deterministic fair value (Graham/Intrinsic)
Stagnant year-over-year earnings growth (-0.30%)
Bearish insider activity, specifically sales by the CFO and General Counsel

Compare Another Pair

CAT vs LECO: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Lincoln Electric Holdings, Inc. (LECO) 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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