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CAT vs LSTR

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
LSTR
Landstar System, Inc.
BEARISH
Price
$168.27
Market Cap
$5.73B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
LSTR
50.84
Forward P/E
CAT
26.48
LSTR
25.07
P/B Ratio
CAT
16.05
LSTR
7.2
P/S Ratio
CAT
5.09
LSTR
1.2
EV/EBITDA
CAT
26.1
LSTR
23.71

Profitability

Gross Margin
CAT
28.79%
LSTR
19.12%
Operating Margin
CAT
16.02%
LSTR
2.67%
Profit Margin
CAT
13.14%
LSTR
2.42%
ROE
CAT
43.53%
LSTR
13.01%
ROA
CAT
7.89%
LSTR
6.59%

Growth

Revenue Growth
CAT
18.0%
LSTR
-2.9%
Earnings Growth
CAT
-11.4%
LSTR
-46.5%

Financial Health

Debt/Equity
CAT
2.07
LSTR
0.17
Current Ratio
CAT
1.44
LSTR
1.75
Quick Ratio
CAT
0.87
LSTR
1.69

Dividends

Dividend Yield
CAT
0.85%
LSTR
0.95%
Payout Ratio
CAT
31.05%
LSTR
47.13%

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
LSTR BEARISH

LSTR exhibits a severe valuation disconnect, trading at $168.27 despite a Graham Number of $41.71 and an Intrinsic Value of $23.17. While the Piotroski F-Score of 4/9 indicates stable financial health and the low Debt/Equity ratio (0.17) provides a safety buffer, these are overshadowed by crashing fundamentals. With YoY earnings growth at -46.50% and revenue declining, the current P/E of 50.84 is unsustainable. The bearish technical trend (10/100) and analyst target price ($152.27) further suggest significant downside risk.

Strengths
Very low Debt/Equity ratio (0.17) indicating minimal leverage risk
Healthy liquidity with a Current Ratio of 1.75 and Quick Ratio of 1.69
Stable Piotroski F-Score (4/9) suggesting no immediate operational collapse
Risks
Extreme overvaluation relative to Graham Number ($41.71) and Intrinsic Value ($23.17)
Severe earnings contraction with YoY growth at -46.50%
Negative revenue growth (-2.90%) indicating a lack of top-line momentum

Compare Another Pair

CAT vs LSTR: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Landstar System, Inc. (LSTR) 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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