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CAT vs MGRC

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
MGRC
McGrath RentCorp
BULLISH
Price
$114.33
Market Cap
$2.81B
Sector
Industrials
AI Confidence
75%

Valuation

P/E Ratio
CAT
39.01
MGRC
18.03
Forward P/E
CAT
26.48
MGRC
16.25
P/B Ratio
CAT
16.05
MGRC
2.27
P/S Ratio
CAT
5.09
MGRC
2.98
EV/EBITDA
CAT
26.1
MGRC
12.67

Profitability

Gross Margin
CAT
28.79%
MGRC
48.19%
Operating Margin
CAT
16.02%
MGRC
28.89%
Profit Margin
CAT
13.14%
MGRC
16.55%
ROE
CAT
43.53%
MGRC
13.24%
ROA
CAT
7.89%
MGRC
6.57%

Growth

Revenue Growth
CAT
18.0%
MGRC
5.3%
Earnings Growth
CAT
-11.4%
MGRC
28.1%

Financial Health

Debt/Equity
CAT
2.07
MGRC
0.43
Current Ratio
CAT
1.44
MGRC
1.79
Quick Ratio
CAT
0.87
MGRC
1.34

Dividends

Dividend Yield
CAT
0.85%
MGRC
1.71%
Payout Ratio
CAT
31.05%
MGRC
30.39%

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
MGRC BULLISH

MGRC presents a stable financial profile with a Piotroski F-Score of 4/9 and a significant valuation gap between its current price ($114.33) and its growth-based intrinsic value ($187.32). While the Graham Number suggests a more conservative defensive value of $84.74, the company's exceptional debt management (Debt/Equity of 0.43 vs sector avg 3.42) and strong earnings growth (28.10% YoY) provide a strong fundamental cushion. Despite a bearish technical trend score, the long-term earnings track record and high operating margins (28.89%) indicate a high-quality business operating at a reasonable valuation.

Strengths
Exceptionally low Debt/Equity ratio (0.43) compared to industrial peers
Strong earnings growth (28.10% YoY) and consistent quarterly beats
High operating margins (28.89%) and gross margins (48.19%)
Risks
Sluggish revenue growth (5.30% YoY) compared to earnings growth
Bearish technical trend (0/100) suggesting short-term price pressure
Moderate Piotroski F-Score (4/9) indicating stable but not improving financial health

Compare Another Pair

CAT vs MGRC: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and McGrath RentCorp (MGRC) 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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