Compare Stocks › CAT vs MS
Caterpillar Inc. (CAT) vs Morgan Stanley (MS)
CAT
Caterpillar Inc.
$688.65
VS
MS
Morgan Stanley
$158.55
Rewards
CAT
- ★Caterpillar Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
- ★Caterpillar Inc. scores 75/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
- ★Free cash flow has grown at a 13.0% CAGR over the past 4 years, demonstrating strong earnings power growth.
MS
- ★Gross margin of 87.1% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Each dollar of retained earnings has created $6.65 of market value — management is an exceptional capital allocator.
- ★PEG ratio of 0.75 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
Risks
CAT
- ⚠FCF yield of 1.8% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠Trailing P/E of 36.6x is 83% above the historical average of 20.0x — the stock trades at a premium to its own history.
- ⚠High leverage (2.07x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
MS
- ⚠High leverage (4.56x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
- ⚠Altman Z-Score of 0.29 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠7 insider sales totaling $25.2M with no purchases in the past 3 months — insiders are reducing their exposure.
Key Valuation Metrics
Learn more →CAT
MS
Valuation
$5.84B
Free Cash Flow
N/A
1.81%
FCF Yield
N/A
36.63
Trailing P/E
15.53
24.87
Forward P/E
12.89
Quality & Moat
13.09%
ROIC
3.43%
41.67%
ROE
14.42%
28.79%
Gross Margin
87.06%
N/A
PEG Ratio
0.75
Balance Sheet Safety
2.07
Debt / Equity
4.56
N/A
Interest Coverage
N/A
2.49
Net Debt / EBITDA
N/A
0.88%
Dividend Yield
2.52%
CAT: 3Ties: 1MS: 4
CATMS
Historical Fundamentals
Learn more →CAT
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
MS
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
$1 Retained Earnings Test
Learn more →CAT
$6.48
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$22.05B
Δ Market Cap
+$142.85B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
MS
$6.65
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$20.84B
Δ Market Cap
+$138.59B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →CAT
14.7% Margin of Safety
Price is 14.7% below estimated fair value
Current Price: $688.65
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Fair Value: $807.79
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
MS
45.5% Margin of Safety
Price is 45.5% below estimated fair value
Current Price: $158.55
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Fair Value: $290.92
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Reverse DCF — Market-Implied Growth
Learn more →CAT
What growth rate is the market pricing in at $689?
+17.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +23.0%
The market implies +17.2% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +23.0%, reflecting heavy growth investment.
MS
Requires positive FCF to compute implied growth rate.
Economic Moat Score
Learn more →CAT
75/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None
Wide moat with strength across all dimensions. ROIC Consistency is the standout factor.
Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
MS
32/100
No Moat
70+ Wide · 40-69 Narrow · <40 None
No durable moat detected, though revenue predictability shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.
Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
Forensic Accounting
Learn more →CAT
-2.43
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
MS
-2.09
Possible Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →CAT
Insiders 0.2%Institutions 72.6%Retail & Other 27.1%
No. of Institutional Holders4,271
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
MS
Insiders 24.0%Institutions 62.7%Retail & Other 13.3%
No. of Institutional Holders3,181
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →CAT
0
Buys (3M)
3
Buys (12M)
Total value (12M): $322,768
MACLENNAN DAVID W
Director
$170,658
@ $568.86 · 2025-11-06
MACLENNAN DAVID W
Director
$120,262
@ $320.70 · 2025-05-07
JOHNSON GERALD
Director
$31,848
@ $318.48 · 2025-05-02
JOHNSON GERALD
Director
$36,557
@ $365.57 · 2025-02-04
JOHNSON GERALD
Director
$39,857
@ $398.57 · 2024-12-04
JOHNSON GERALD
Director
$33,859
@ $338.59 · 2024-09-04
JOHNSON GERALD
Director
$35,640
@ $356.40 · 2024-05-20
MACLENNAN DAVID W
Director
$168,695
@ $337.39 · 2024-05-03
Open market purchases · includes direct & indirect ownership · excludes option exercises
MS
0
Buys (3M)
1
Buys (12M)
Total value (12M): $5,630
PETERSON DOUGLAS L
Director
$5,630
@ $156.39 · 2025-10-17
Open market purchases · includes direct & indirect ownership · excludes option exercises
Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →CAT
14
Sells (3M)
24
Sells (12M)
Total value (12M): $156.13M
CREED JOSEPH E
Chief Executive Officer
$1.80M
@ $718.93 · 2026-03-05
SHURMAN RODNEY MICHAEL
Officer
$1.73M
@ $759.61 · 2026-02-23
SHURMAN RODNEY MICHAEL
Officer
$1.35M
@ $763.39 · 2026-02-17
SCHAUPP WILLIAM E
Officer
$742,802
@ $764.20 · 2026-02-17
FASSINO ANTHONY D.
Officer
$6.13M
@ $776.90 · 2026-02-13
KAISER JASON
Officer
$1.31M
@ $776.70 · 2026-02-12
DE LANGE BOB
Officer
$9.59M
@ $767.08 · 2026-02-11
FASSINO ANTHONY D.
Officer
$4.36M
@ $722.15 · 2026-02-06
DE LANGE BOB
Officer
$16.31M
@ $720.11 · 2026-02-06
DE LANGE BOB
Officer
$11.33M
@ $704.97 · 2026-02-04
FASSINO ANTHONY D.
Officer
$7.26M
@ $680.45 · 2026-02-02
JOHNSON DENISE C.
Officer
$26.66M
@ $681.08 · 2026-02-02
DE LANGE BOB
Officer
$10.91M
@ $682.99 · 2026-02-02
BONFIELD ANDREW ROBERT JOHN
Chief Financial Officer
$5.75M
@ $575.06 · 2025-12-31
BONFIELD ANDREW ROBERT JOHN
Chief Financial Officer
$5.71M
@ $571.44 · 2025-12-01
KAISER JASON
Officer
$6.03M
@ $563.60 · 2025-11-11
FASSINO ANTHONY D.
Officer
$4.67M
@ $570.18 · 2025-11-10
SCHAUPP WILLIAM E
Officer
$686,664
@ $572.22 · 2025-11-05
DE LANGE BOB
Officer
$8.23M
@ $562.36 · 2025-11-05
UMPLEBY DONALD JAMES III
Officer
$8.67M
@ $505.29 · 2025-10-10
UMPLEBY DONALD JAMES III
Officer
$7.94M
@ $462.65 · 2025-09-22
UMPLEBY DONALD JAMES III
Officer and Director
$7.09M
@ $412.87 · 2025-09-02
SCHWAB SUSAN C
Director
$952,840
@ $410.00 · 2025-08-15
KAISER JASON
Officer
$902,650
@ $417.70 · 2025-08-11
KAISER JASON
Officer
$860,148
@ $354.70 · 2025-02-18
BONFIELD ANDREW ROBERT JOHN
Chief Financial Officer
$3.80M
@ $380.09 · 2025-01-16
FASSINO ANTHONY D.
President
$2.57M
@ $408.59 · 2024-11-29
BONFIELD ANDREW ROBERT JOHN
Chief Financial Officer
$4.05M
@ $405.36 · 2024-11-25
SCHWAB SUSAN C
Director
$766.00
@ $383.00 · 2024-11-15
DE LANGE BOB
Officer
$5.19M
@ $410.25 · 2024-11-07
FASSINO ANTHONY D.
President
$2.26M
@ $409.84 · 2024-11-06
DICKINSON DANIEL M
Director
$543,400
@ $418.00 · 2024-11-06
JOHNSON CHERYL H
Officer
$1.01M
@ $378.84 · 2024-11-04
SCHAUPP WILLIAM E
Officer
$368,789
@ $380.98 · 2024-11-01
FASSINO ANTHONY D.
Officer
$1.12M
@ $351.36 · 2024-08-30
JOHNSON CHERYL H
Officer
$1.02M
@ $342.48 · 2024-08-22
JOHNSON CHERYL H
Officer
$527,800
@ $350.00 · 2024-07-16
JOHNSON CHERYL H
Officer
$512,720
@ $340.00 · 2024-05-30
DE LANGE BOB
Officer
$7.80M
@ $356.90 · 2024-05-13
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
MS
7
Sells (3M)
16
Sells (12M)
Total value (12M): $62.45M
SIMKOWITZ DANIEL A
President
$6.02M
@ $182.61 · 2026-01-30
GROSSMAN ERIC F
Officer
$3.97M
@ $184.00 · 2026-01-20
CRAWLEY MANDELL L.
Officer
$1.44M
@ $183.45 · 2026-01-20
YESHAYA SHARON
Chief Financial Officer
$2.94M
@ $185.77 · 2026-01-20
SMITH CHARLES AUBREY III
Officer
$1.55M
@ $182.08 · 2026-01-20
PIZZI MICHAEL A
Officer
$3.69M
@ $184.55 · 2026-01-20
SAPERSTEIN ANDREW MICHAEL
President
$5.57M
@ $183.62 · 2026-01-20
PICK EDWARD N.
Chief Executive Officer
$16.43M
@ $164.34 · 2025-10-31
GROSSMAN ERIC F
Officer
$1.69M
@ $141.12 · 2025-07-17
SIMKOWITZ DANIEL A
President
$4.09M
@ $141.13 · 2025-07-17
SMITH CHARLES AUBREY III
Officer
$2.81M
@ $140.30 · 2025-07-17
PIZZI MICHAEL A
Officer
$2.53M
@ $140.62 · 2025-07-17
SIMKOWITZ DANIEL A
President
$3.70M
@ $127.37 · 2025-05-12
HERZ ROBERT H
Director
$95,459
@ $119.32 · 2025-05-02
SAPERSTEIN ANDREW MICHAEL
President
$4.80M
@ $120.00 · 2025-05-02
GROSSMAN ERIC F
Officer
$1.12M
@ $111.65 · 2025-04-15
CRAWLEY MANDELL L.
Officer
$1.15M
@ $138.06 · 2025-01-22
GROSSMAN ERIC F
Officer
$1.78M
@ $136.20 · 2025-01-21
SIMKOWITZ DANIEL A
President
$5.00M
@ $136.61 · 2025-01-21
AKRAM RAJA
Chief Financial Officer
$2.38M
@ $136.01 · 2025-01-21
PIZZI MICHAEL A
Officer
$2.52M
@ $136.92 · 2025-01-21
SAPERSTEIN ANDREW MICHAEL
President
$4.20M
@ $136.43 · 2025-01-21
CRAWLEY MANDELL L.
Officer
$368,375
@ $105.25 · 2024-07-26
AKRAM RAJA
Officer
$797,764
@ $106.37 · 2024-07-18
SIMKOWITZ DANIEL A
President
$4.26M
@ $106.54 · 2024-07-17
HERZ ROBERT H
Director
$106,621
@ $106.62 · 2024-07-17
CRAWLEY MANDELL L.
Officer
$692,663
@ $99.61 · 2024-05-14
GORMAN JAMES P
Officer and Director
$9.02M
@ $90.21 · 2024-04-18
SMITH CHARLES AUBREY III
Officer
$1.01M
@ $90.09 · 2024-04-17
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →CAT
😐Neutral(54/100)
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
MS
😐Neutral(48/100)
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →CAT
⚪Awaiting DCF Data
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
DCF Margin of Safety: N/AMr. Market's Mood: Neutral (54)
MS
⚪Awaiting DCF Data
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
DCF Margin of Safety: N/AMr. Market's Mood: Neutral (48)