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CAT vs MG

CAT
Caterpillar Inc.
BEARISH
Price
$810.05
Market Cap
$376.91B
Sector
Industrials
AI Confidence
85%
MG
Mistras Group, Inc.
BEARISH
Price
$18.49
Market Cap
$588.3M
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
43.11
MG
34.89
Forward P/E
CAT
28.95
MG
15.16
P/B Ratio
CAT
17.68
MG
2.48
P/S Ratio
CAT
5.58
MG
0.81
EV/EBITDA
CAT
29.48
MG
9.91

Profitability

Gross Margin
CAT
28.79%
MG
31.34%
Operating Margin
CAT
16.02%
MG
10.82%
Profit Margin
CAT
13.14%
MG
2.33%
ROE
CAT
43.53%
MG
7.79%
ROA
CAT
7.89%
MG
6.04%

Growth

Revenue Growth
CAT
18.0%
MG
5.1%
Earnings Growth
CAT
-11.4%
MG
-25.0%

Financial Health

Debt/Equity
CAT
2.07
MG
1.03
Current Ratio
CAT
1.44
MG
1.74
Quick Ratio
CAT
0.87
MG
1.47

Dividends

Dividend Yield
CAT
0.74%
MG
--
Payout Ratio
CAT
31.05%
MG
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
MG BEARISH

Mistras Group (MG) presents a significant valuation disconnect, with a Piotroski F-Score of 4/9 indicating only stable financial health. The current price of $18.49 trades at a massive premium compared to its Graham Number ($9.42) and Intrinsic Value ($3.71). While recent price action has been exceptionally strong, the underlying fundamentals are marred by negative YoY earnings growth (-25%) and a bearish technical trend score of 10/100. The stock appears to be priced for a recovery that is not yet supported by current profitability metrics.

Strengths
Attractive Price-to-Sales ratio of 0.81
Strong short-term liquidity with a Current Ratio of 1.74 and Quick Ratio of 1.47
Significant 1-year price appreciation (+98.2%)
Risks
Severe overvaluation relative to Graham Number ($9.42) and Intrinsic Value ($3.71)
Negative YoY earnings growth of -25.00%
Very low Technical Trend score (10/100) suggesting a potential trend reversal

Compare Another Pair

CAT vs MG: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Mistras Group, Inc. (MG) 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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