Compare Stocks › CAT vs PM
Caterpillar Inc. (CAT) vs Philip Morris International Inc. (PM)
CAT
Caterpillar Inc.
$688.65
VS
PM
Philip Morris International Inc.
$163.37
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.
PM
- ★Philip Morris International Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 67.1% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Philip Morris International Inc. scores 100/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.
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.
PM
- ⚠5 insider sales totaling $27.7M with no purchases in the past 3 months — insiders are reducing their exposure.
Key Valuation Metrics
Learn more →CAT
PM
Valuation
$5.84B
Free Cash Flow
$8.94B
1.81%
FCF Yield
3.51%
36.63
Trailing P/E
22.47
24.87
Forward P/E
17.76
Quality & Moat
13.09%
ROIC
21.33%
41.67%
ROE
N/A
28.79%
Gross Margin
67.12%
N/A
PEG Ratio
N/A
Balance Sheet Safety
2.07
Debt / Equity
N/A
N/A
Interest Coverage
N/A
2.49
Net Debt / EBITDA
2.39
0.88%
Dividend Yield
3.60%
CAT: 0Ties: 2PM: 7
CATPM
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.
PM
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
PM
$64.75
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$1.43B
Δ Market Cap
+$92.79B
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
PM
16.7% Overvalued
Price is 16.7% above estimated fair value
Current Price: $163.37
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Fair Value: $140.04
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.
PM
What growth rate is the market pricing in at $163?
+11.5%
Market-Implied Owner Earnings Growth
Standard FCF implies +14.7%
The market implies +11.5% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +14.7%, reflecting heavy growth investment.
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.
PM
100/100
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 5 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.
PM
-2.39
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.
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.
PM
Insiders 0.2%Institutions 83.2%Retail & Other 16.6%
No. of Institutional Holders3,365
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
PM
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
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
PM
5
Sells (3M)
5
Sells (12M)
Total value (12M): $27.72M
KENNEDY STACEY
Officer
$2.63M
@ $183.13 · 2026-02-20
BABEAU EMMANUEL
Officer
$6.14M
@ $181.61 · 2026-02-19
DE WILDE FREDERIC J
Officer
$3.65M
@ $182.58 · 2026-02-19
GUERIN YANN
Officer
$726,760
@ $181.69 · 2026-02-19
OLCZAK JACEK
Officer and Director
$14.57M
@ $182.18 · 2026-02-19
DAHLGREN LARS
Officer
$562,740
@ $152.96 · 2025-03-06
ANDOLINA MASSIMO
Officer
$2.73M
@ $156.05 · 2025-02-24
BABEAU EMMANUEL
Chief Financial Officer
$4.47M
@ $148.85 · 2025-02-20
BARTH WERNER
Officer
$1.49M
@ $148.67 · 2025-02-20
CALANTZOPOULOS ANDRE
Chairman of the Board
$6.06M
@ $149.06 · 2025-02-20
GUERIN YANN
General Counsel
$378,200
@ $151.28 · 2025-02-20
OLCZAK JACEK
Chief Executive Officer
$5.95M
@ $148.87 · 2025-02-20
DE WILDE FREDERIC J
Officer
$2.17M
@ $144.54 · 2025-02-07
VOLPETTI STEFANO
Officer
$1.32M
@ $132.48 · 2024-10-31
DE WILDE FREDERIC J
Officer
$3.27M
@ $130.96 · 2024-10-23
BARTH WERNER
Officer
$974,850
@ $129.98 · 2024-10-23
CALANTZOPOULOS ANDRE
Chairman of the Board
$13.23M
@ $129.85 · 2024-10-23
DE WILDE FREDERIC J
Officer
$2.39M
@ $119.30 · 2024-08-22
ANDOLINA MASSIMO
Officer
$1.04M
@ $115.35 · 2024-08-08
DE WILDE FREDERIC J
Officer
$2.26M
@ $113.01 · 2024-07-25
DE WILDE FREDERIC J
Officer
$1.93M
@ $96.42 · 2024-04-25
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.
PM
😐Neutral(46/100)
"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)
PM
⚪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 (46)