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CAT vs MEC

CAT
Caterpillar Inc.
BEARISH
Price
$810.05
Market Cap
$376.91B
Sector
Industrials
AI Confidence
85%
MEC
Mayville Engineering Company, Inc.
BEARISH
Price
$21.83
Market Cap
$443.6M
Sector
Industrials
AI Confidence
80%

Valuation

P/E Ratio
CAT
43.11
MEC
--
Forward P/E
CAT
28.95
MEC
17.12
P/B Ratio
CAT
17.68
MEC
1.84
P/S Ratio
CAT
5.58
MEC
0.81
EV/EBITDA
CAT
29.48
MEC
16.09

Profitability

Gross Margin
CAT
28.79%
MEC
11.51%
Operating Margin
CAT
16.02%
MEC
-4.64%
Profit Margin
CAT
13.14%
MEC
-1.48%
ROE
CAT
43.53%
MEC
-3.29%
ROA
CAT
7.89%
MEC
0.13%

Growth

Revenue Growth
CAT
18.0%
MEC
10.7%
Earnings Growth
CAT
-11.4%
MEC
--

Financial Health

Debt/Equity
CAT
2.07
MEC
0.99
Current Ratio
CAT
1.44
MEC
1.72
Quick Ratio
CAT
0.87
MEC
0.85

Dividends

Dividend Yield
CAT
0.74%
MEC
--
Payout Ratio
CAT
31.05%
MEC
0.0%

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
MEC BEARISH

MEC exhibits severe fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating poor financial health and deteriorating operational efficiency. Despite a 'Strong Buy' analyst consensus and positive revenue growth of 10.7%, the company is currently unprofitable with negative profit (-1.48%) and operating margins (-4.64%). The disconnect between the strong 1-year price performance (+73.5%) and the underlying financial decay is further exacerbated by bearish insider selling and a failing technical trend score. The company is essentially growing its top line while eroding its bottom line.

Strengths
Consistent revenue growth (10.7% YoY)
Low Price-to-Sales ratio (0.81) suggesting potential undervaluation relative to revenue
Strong 1-year price appreciation (+73.5%)
Risks
Critical financial health failure (Piotroski F-Score 2/9)
Negative profitability (Profit Margin -1.48%, ROE -3.29%)
Declining earnings growth (-14.3% YoY)

Compare Another Pair

CAT vs MEC: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Mayville Engineering Company, Inc. (MEC) 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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