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CAT vs ODFL

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
ODFL
Old Dominion Freight Line, Inc.
NEUTRAL
Price
$132.29
Market Cap
$28.32B
Sector
Industrials
AI Confidence
72%

Valuation

P/E Ratio
CAT
39.01
ODFL
26.62
Forward P/E
CAT
26.48
ODFL
22.42
P/B Ratio
CAT
16.05
ODFL
6.5
P/S Ratio
CAT
5.09
ODFL
5.08
EV/EBITDA
CAT
26.1
ODFL
15.81

Profitability

Gross Margin
CAT
28.79%
ODFL
39.3%
Operating Margin
CAT
16.02%
ODFL
25.66%
Profit Margin
CAT
13.14%
ODFL
18.97%
ROE
CAT
43.53%
ODFL
25.06%
ROA
CAT
7.89%
ODFL
15.89%

Growth

Revenue Growth
CAT
18.0%
ODFL
-4.3%
Earnings Growth
CAT
-11.4%
ODFL
-10.5%

Financial Health

Debt/Equity
CAT
2.07
ODFL
0.02
Current Ratio
CAT
1.44
ODFL
1.2
Quick Ratio
CAT
0.87
ODFL
1.06

Dividends

Dividend Yield
CAT
0.85%
ODFL
0.85%
Payout Ratio
CAT
31.05%
ODFL
22.13%

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
ODFL NEUTRAL

Old Dominion Freight Line (ODFL) trades at $132.29, down 40.4% over the past year amid declining revenue and earnings growth, despite maintaining industry-leading profitability with an 18.97% profit margin and 25.66% operating margin. The stock appears reasonably valued relative to peers, with a P/E of 26.62 below the sector average of 31.89, though forward P/E of 22.42 suggests some earnings recovery is priced in. While the company’s balance sheet is exceptionally strong (Debt/Equity: 0.02), recent negative growth trends and lackluster price momentum contrast with a robust historical earnings track record and consistent analyst target of $156.95 implying 18.6% upside. Neutral stance reflects balancing of high-quality fundamentals against cyclical headwinds in trucking and near-term growth challenges.

Strengths
Exceptional profitability: 18.97% net margin and 25.66% operating margin significantly above sector averages of 13.67% and 20.48% respectively
Superior return metrics: ROE of 25.06% outperforms peer average ROE of 31.90% despite lower leverage, indicating efficient capital use
Extremely conservative capital structure: Debt/Equity ratio of 0.02 provides substantial financial flexibility and resilience in downturns
Risks
Negative growth trajectory: Revenue down 4.3% YoY and earnings down 10.5% YoY indicate cyclical or structural demand weakness
Deteriorating price momentum: 1-year return of -40.4% and 6-month return of -22.5% reflect investor skepticism on near-term outlook
Forward earnings deceleration: Q/Q EPS growth of -12.2% most recent period raises concerns about margin sustainability

Compare Another Pair

CAT vs ODFL: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Old Dominion Freight Line, Inc. (ODFL) 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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