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CAT vs LHX

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
LHX
L3Harris Technologies, Inc.
NEUTRAL
Price
$324.88
Market Cap
$60.68B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
LHX
38.04
Forward P/E
CAT
26.48
LHX
24.06
P/B Ratio
CAT
16.05
LHX
3.16
P/S Ratio
CAT
5.09
LHX
4.72
EV/EBITDA
CAT
26.1
LHX
36.76

Profitability

Gross Margin
CAT
28.79%
LHX
30.41%
Operating Margin
CAT
16.02%
LHX
9.73%
Profit Margin
CAT
13.14%
LHX
10.37%
ROE
CAT
43.53%
LHX
--
ROA
CAT
7.89%
LHX
--

Growth

Revenue Growth
CAT
18.0%
LHX
190.0%
Earnings Growth
CAT
-11.4%
LHX
-6.1%

Financial Health

Debt/Equity
CAT
2.07
LHX
0.35
Current Ratio
CAT
1.44
LHX
--
Quick Ratio
CAT
0.87
LHX
--

Dividends

Dividend Yield
CAT
0.85%
LHX
1.54%
Payout Ratio
CAT
31.05%
LHX
56.27%

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
LHX NEUTRAL

LHX exhibits strong fundamental health with a Piotroski F-Score of 7/9 and a conservative Debt/Equity ratio of 0.35. However, the stock is trading at a significant premium, with a current price of $324.88 far exceeding both the Graham Number ($140.53) and the growth-based Intrinsic Value ($59.78). While a massive $38.7 billion contractual backlog provides excellent revenue visibility, negative YoY earnings growth and bearish insider activity temper the bullish analyst consensus. The overall profile is that of a high-quality company currently priced for perfection.

Strengths
Strong financial health indicated by a Piotroski F-Score of 7/9
Substantial contractual backlog of $38.7 billion ensuring long-term revenue visibility
Very low leverage with a Debt/Equity ratio of 0.35
Risks
Severe valuation gap between current price and deterministic fair value models
Negative Year-over-Year earnings growth (-6.10%)
Bearish insider sentiment with consistent selling and zero buying activity

Compare Another Pair

CAT vs LHX: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and L3Harris Technologies, Inc. (LHX) 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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