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CAT vs PRIM

CAT
Caterpillar Inc.
BEARISH
Price
$810.05
Market Cap
$376.91B
Sector
Industrials
AI Confidence
85%
PRIM
Primoris Services Corporation
NEUTRAL
Price
$180.35
Market Cap
$9.78B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
43.11
PRIM
36.0
Forward P/E
CAT
28.95
PRIM
26.77
P/B Ratio
CAT
17.68
PRIM
5.8
P/S Ratio
CAT
5.58
PRIM
1.29
EV/EBITDA
CAT
29.48
PRIM
20.1

Profitability

Gross Margin
CAT
28.79%
PRIM
10.73%
Operating Margin
CAT
16.02%
PRIM
4.17%
Profit Margin
CAT
13.14%
PRIM
3.63%
ROE
CAT
43.53%
PRIM
17.79%
ROA
CAT
7.89%
PRIM
6.01%

Growth

Revenue Growth
CAT
18.0%
PRIM
6.7%
Earnings Growth
CAT
-11.4%
PRIM
-2.9%

Financial Health

Debt/Equity
CAT
2.07
PRIM
0.57
Current Ratio
CAT
1.44
PRIM
1.26
Quick Ratio
CAT
0.87
PRIM
1.16

Dividends

Dividend Yield
CAT
0.74%
PRIM
0.18%
Payout Ratio
CAT
31.05%
PRIM
6.37%

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
PRIM NEUTRAL

Primoris Services Corporation exhibits stable financial health with a Piotroski F-Score of 6/9, but faces a severe valuation disconnect. The current price of $180.35 trades at a massive premium to both the Graham Number ($59.21) and the growth-based Intrinsic Value ($35.07). While the company maintains a strong ROE of 17.79% and a healthy Debt/Equity ratio of 0.57, the recent negative earnings growth (-2.90% YoY) and thin profit margins (3.63%) make the current P/E of 36.00 difficult to justify fundamentally.

Strengths
Strong Return on Equity (ROE) of 17.79%
Conservative leverage with a Debt/Equity ratio of 0.57
Consistent track record of beating earnings estimates (3/4 last 4 quarters)
Risks
Extreme overvaluation relative to deterministic fair value models
Negative earnings growth both YoY (-2.90%) and Q/Q (-4.20%)
Very thin net profit margins (3.63%) leaving little room for operational error

Compare Another Pair

CAT vs PRIM: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Primoris Services Corporation (PRIM) 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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