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CAT vs NPK

CAT
Caterpillar Inc.
BEARISH
Price
$810.05
Market Cap
$376.91B
Sector
Industrials
AI Confidence
85%
NPK
National Presto Industries, Inc.
BEARISH
Price
$139.84
Market Cap
$1.0B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
43.11
NPK
30.2
Forward P/E
CAT
28.95
NPK
160.74
P/B Ratio
CAT
17.68
NPK
2.52
P/S Ratio
CAT
5.58
NPK
1.99
EV/EBITDA
CAT
29.48
NPK
21.45

Profitability

Gross Margin
CAT
28.79%
NPK
15.95%
Operating Margin
CAT
16.02%
NPK
11.38%
Profit Margin
CAT
13.14%
NPK
6.57%
ROE
CAT
43.53%
NPK
8.67%
ROA
CAT
7.89%
NPK
5.63%

Growth

Revenue Growth
CAT
18.0%
NPK
21.7%
Earnings Growth
CAT
-11.4%
NPK
-27.8%

Financial Health

Debt/Equity
CAT
2.07
NPK
0.08
Current Ratio
CAT
1.44
NPK
4.25
Quick Ratio
CAT
0.87
NPK
0.98

Dividends

Dividend Yield
CAT
0.74%
NPK
0.72%
Payout Ratio
CAT
31.05%
NPK
21.6%

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
NPK BEARISH

NPK exhibits severe financial weakness with a Piotroski F-Score of 2/9 and is trading at a significant premium to its Graham Number ($76.02) and Intrinsic Value ($32.41). While the company shows strong revenue growth and a massive increase in defense backlog to $1.75B, this is offset by declining earnings (-27.8%) and a concerning Forward P/E of 160.74. Insider selling and a bearish technical trend further dampen the outlook. The disparity between the current price and fundamental value suggests a high risk of a price correction.

Strengths
Strong YoY Revenue Growth of 21.70%
Substantial Defense contract backlog growth ($1.75B in 2025 vs $564M in 2023)
Extremely low leverage with a Debt/Equity ratio of 0.08
Risks
Weak financial health indicated by a Piotroski F-Score of 2/9
Severe overvaluation with current price ($139.84) far exceeding intrinsic value ($32.41)
Negative earnings growth (-27.8% YoY) despite rising revenues

Compare Another Pair

CAT vs NPK: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and National Presto Industries, Inc. (NPK) 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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