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CAT vs QXO

CAT
Caterpillar Inc.
BEARISH
Price
$810.05
Market Cap
$376.91B
Sector
Industrials
AI Confidence
85%
QXO
QXO, Inc.
NEUTRAL
Price
$19.82
Market Cap
$14.37B
Sector
Industrials
AI Confidence
80%

Valuation

P/E Ratio
CAT
43.11
QXO
--
Forward P/E
CAT
28.95
QXO
28.87
P/B Ratio
CAT
17.68
QXO
1.55
P/S Ratio
CAT
5.58
QXO
2.1
EV/EBITDA
CAT
29.48
QXO
33.45

Profitability

Gross Margin
CAT
28.79%
QXO
24.91%
Operating Margin
CAT
16.02%
QXO
-1.99%
Profit Margin
CAT
13.14%
QXO
-4.08%
ROE
CAT
43.53%
QXO
-3.79%
ROA
CAT
7.89%
QXO
0.45%

Growth

Revenue Growth
CAT
18.0%
QXO
14725.0%
Earnings Growth
CAT
-11.4%
QXO
--

Financial Health

Debt/Equity
CAT
2.07
QXO
0.4
Current Ratio
CAT
1.44
QXO
3.58
Quick Ratio
CAT
0.87
QXO
2.56

Dividends

Dividend Yield
CAT
0.74%
QXO
--
Payout Ratio
CAT
31.05%
QXO
0.0%

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
QXO NEUTRAL

QXO presents a stark contrast between fundamental operational health and analyst optimism. The deterministic baseline is weak, highlighted by a Piotroski F-Score of 2/9, indicating significant operational fragility and negative profitability. While the balance sheet remains liquid with a strong Current Ratio of 3.58 and low Debt/Equity (0.40), the company is currently loss-making with a -4.08% profit margin. The extreme revenue growth (14,725%) suggests a structural pivot or massive acquisition rather than organic scaling, making current valuation metrics speculative.

Strengths
Strong liquidity position with a Current Ratio of 3.58
Conservative leverage with a Debt/Equity ratio of 0.40
Strong analyst consensus with a 'strong_buy' rating and $33 target
Risks
Critical operational weakness indicated by a Piotroski F-Score of 2/9
Negative profitability (Profit Margin -4.08%, ROE -3.79%)
High PEG ratio (2.95) suggesting overvaluation relative to growth

Compare Another Pair

CAT vs QXO: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and QXO, Inc. (QXO) 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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