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CAT vs SWBI

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
SWBI
Smith & Wesson Brands, Inc.
BEARISH
Price
$14.85
Market Cap
$660.7M
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAT
39.01
SWBI
61.88
Forward P/E
CAT
26.48
SWBI
45.0
P/B Ratio
CAT
16.05
SWBI
1.82
P/S Ratio
CAT
5.09
SWBI
1.36
EV/EBITDA
CAT
26.1
SWBI
13.95

Profitability

Gross Margin
CAT
28.79%
SWBI
26.66%
Operating Margin
CAT
16.02%
SWBI
4.81%
Profit Margin
CAT
13.14%
SWBI
2.24%
ROE
CAT
43.53%
SWBI
2.99%
ROA
CAT
7.89%
SWBI
2.46%

Growth

Revenue Growth
CAT
18.0%
SWBI
17.1%
Earnings Growth
CAT
-11.4%
SWBI
67.6%

Financial Health

Debt/Equity
CAT
2.07
SWBI
0.3
Current Ratio
CAT
1.44
SWBI
4.5
Quick Ratio
CAT
0.87
SWBI
1.35

Dividends

Dividend Yield
CAT
0.85%
SWBI
3.51%
Payout Ratio
CAT
31.05%
SWBI
216.67%

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
SWBI BEARISH

SWBI exhibits a concerning disconnect between its market price ($14.85) and its deterministic fair value, with a Graham Number of $6.64 and Intrinsic Value of $7.08. While the Piotroski F-Score of 4/9 indicates stable financial health and growth metrics are strong, the valuation is stretched with a P/E of 61.88. Most critically, the dividend payout ratio of 216.67% is fundamentally unsustainable. Despite strong 1-year price momentum, the technical trend has turned sharply bearish (10/100), suggesting a correction toward fair value is likely.

Strengths
Strong YoY earnings growth of 67.60%
Low Debt/Equity ratio of 0.30 indicating low leverage
Excellent liquidity with a Current Ratio of 4.50
Risks
Unsustainable dividend payout ratio (216.67%)
Extremely thin profit margins (2.24%)
Significant premium to Graham Number and Intrinsic Value

Compare Another Pair

CAT vs SWBI: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Smith & Wesson Brands, Inc. (SWBI) 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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