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CAT vs PCAR

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
PCAR
PACCAR Inc
NEUTRAL
Price
$127.20
Market Cap
$66.89B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
PCAR
28.2
Forward P/E
CAT
26.48
PCAR
18.76
P/B Ratio
CAT
16.05
PCAR
3.47
P/S Ratio
CAT
5.09
PCAR
2.35
EV/EBITDA
CAT
26.1
PCAR
21.45

Profitability

Gross Margin
CAT
28.79%
PCAR
14.01%
Operating Margin
CAT
16.02%
PCAR
9.21%
Profit Margin
CAT
13.14%
PCAR
8.35%
ROE
CAT
43.53%
PCAR
12.92%
ROA
CAT
7.89%
PCAR
4.37%

Growth

Revenue Growth
CAT
18.0%
PCAR
-13.7%
Earnings Growth
CAT
-11.4%
PCAR
-35.9%

Financial Health

Debt/Equity
CAT
2.07
PCAR
0.82
Current Ratio
CAT
1.44
PCAR
2.17
Quick Ratio
CAT
0.87
PCAR
1.94

Dividends

Dividend Yield
CAT
0.85%
PCAR
1.04%
Payout Ratio
CAT
31.05%
PCAR
29.27%

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
PCAR NEUTRAL

PACCAR exhibits strong fundamental health with a Piotroski F-Score of 7/9 and robust liquidity ratios, yet it faces a severe valuation disconnect. The current price of $127.20 trades at a significant premium to both the Graham Number ($61.0) and the growth-based Intrinsic Value ($31.57). While the balance sheet is a fortress, the company is currently grappling with sharp declines in YoY revenue (-13.7%) and earnings (-35.9%), coupled with bearish insider activity from the CEO and CFO.

Strengths
Strong financial health indicated by a Piotroski F-Score of 7/9
Excellent liquidity with a Current Ratio of 2.17 and Quick Ratio of 1.94
Conservative dividend payout ratio (29.27%) ensuring sustainability
Risks
Severe valuation premium compared to defensive fair value (Graham Number)
Significant contraction in growth with YoY earnings down 35.9%
Bearish insider sentiment with multiple C-suite sell transactions

Compare Another Pair

CAT vs PCAR: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and PACCAR Inc (PCAR) 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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