` CAT (Caterpillar Inc) vs S&P 500 Comparison - Alpha Spread

CAT
vs
S&P 500

Over the past 12 months, CAT has underperformed S&P 500, delivering a return of -2% compared to the S&P 500's 11% growth.

Stocks Performance
CAT vs S&P 500

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Performance Gap
CAT vs S&P 500

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CAT
S&P 500
Difference

Performance By Year
CAT vs S&P 500

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CAT
S&P 500
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Competitors Performance
Caterpillar Inc vs Peers

S&P 500
CAT
VOLV B
PCAR
CMI
6201
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Caterpillar Inc
Glance View

Economic Moat
Wide
Market Cap
163.7B USD
Industry
Machinery

Caterpillar Inc. has a storied history embedded within the rugged landscapes and bustling urban environments powered by its machines. Born out of the merger between the Holt Manufacturing Company and the C. L. Best Tractor Company in 1925, Caterpillar has since played a crucial role in advancing construction, mining, agriculture, and forestry industries across the globe. Known universally by its striking yellow machinery, the company's core operations revolve around designing, manufacturing, and selling construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. These pieces of heavy machinery are the backbone of numerous industries that build and maintain essential infrastructure, from roads and bridges to power plants and vast mining operations. Caterpillar's business model is layered with multiple revenue streams, anchored by the sale and leasing of new equipment, the provision of financial services, and the lucrative aftermarket parts and services segment. While the initial sale of equipment generates a significant portion of its revenue, the long-term sustainability comes from servicing these products, ensuring they remain operational in the field for many years. Through its financing arm, Caterpillar Financial Services, the company facilitates the acquisition of its heavy machinery, providing leasing and financial products that enhance client relationships and ensure steady revenue circulation. By integrating technology into its operations, Caterpillar also harnesses data analytics through its fleet management offerings, enhancing efficiency and providing clients with insightful operational data. This holistic approach not only underpins a strong competitive advantage but also solidifies Caterpillar’s reputation as a linchpin in the machinery sector.

CAT Intrinsic Value
289.81 USD
Overvaluation 15%
Intrinsic Value
Price
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