Compare Stocks › CAT vs MCD
Caterpillar Inc. (CAT) vs McDonald's Corporation (MCD)
CAT
Caterpillar Inc.
$688.65
VS
MCD
McDonald's Corporation
$309.58
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.
MCD
- ★McDonald's Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★McDonald's Corporation scores 84/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
- ★Dividend yield of 2.40% with a consistent or growing payout over the past 4 years.
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.
MCD
- ⚠FCF yield of 2.8% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠PEG ratio of 3.16 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
- ⚠7 insider sales totaling $23.7M with no purchases in the past 3 months — insiders are reducing their exposure.
Key Valuation Metrics
Learn more →CAT
MCD
Valuation
$5.84B
Free Cash Flow
$6.30B
1.81%
FCF Yield
2.85%
36.63
Trailing P/E
25.91
24.87
Forward P/E
21.62
Quality & Moat
13.09%
ROIC
17.46%
41.67%
ROE
N/A
28.79%
Gross Margin
57.41%
N/A
PEG Ratio
3.16
Balance Sheet Safety
2.07
Debt / Equity
N/A
N/A
Interest Coverage
N/A
2.49
Net Debt / EBITDA
3.70
0.88%
Dividend Yield
2.40%
CAT: 1Ties: 1MCD: 7
CATMCD
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.
MCD
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
MCD
$0.82
created per $1 retained over 3 years
Mediocre Allocator
Σ Retained
$9.30B
Δ Market Cap
+$7.67B
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
MCD
152.0% Overvalued
Price is 152.0% above estimated fair value
Current Price: $309.58
Strongly undervalued
Strongly overvalued
Fair Value: $122.86
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.
MCD
What growth rate is the market pricing in at $310?
+18.3%
Market-Implied FCF Growth Rate
Market pricing in significantly higher growth than history — aggressive.
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.
MCD
84/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None
Wide moat with strength across all dimensions. Margin Stability 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.
MCD
-2.52
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.
MCD
Insiders 0.3%Institutions 75.6%Retail & Other 24.1%
No. of Institutional Holders4,410
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
MCD
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
MCD
7
Sells (3M)
25
Sells (12M)
Total value (12M): $43.80M
ERLINGER JOSEPH M
Officer
$862,221
@ $328.34 · 2026-03-10
ERLINGER JOSEPH M
Officer
$110,033
@ $330.43 · 2026-02-23
BANNER JONATHAN
Officer
$2.07M
@ $333.32 · 2026-02-23
KEMPCZINSKI CHRISTOPHER J
Chief Executive Officer
$17.47M
@ $332.44 · 2026-02-13
FLATLEY EDITH MORGAN
Officer
$1.55M
@ $331.00 · 2026-02-12
ERLINGER JOSEPH M
Officer
$854,106
@ $325.25 · 2026-02-10
ERLINGER JOSEPH M
Officer
$805,079
@ $306.58 · 2026-01-12
RALLS-MORRISON DESIREE ANN
Officer
$795,520
@ $320.00 · 2025-12-16
FLATLEY EDITH MORGAN
Officer
$207,270
@ $315.00 · 2025-12-12
STEIJAERT MANUEL JM
Officer
$2.01M
@ $305.50 · 2025-12-01
BORDEN IAN FREDERICK
Chief Financial Officer
$5.31M
@ $310.00 · 2025-11-21
ERLINGER JOSEPH M
Officer
$977,095
@ $305.82 · 2025-11-14
STEIJAERT MANUEL JM
Officer
$3.95M
@ $300.42 · 2025-11-05
FLATLEY EDITH MORGAN
Officer
$315,000
@ $315.00 · 2025-09-02
FLATLEY EDITH MORGAN
Officer
$1.49M
@ $315.00 · 2025-08-20
BANNER JONATHAN
Officer
$310,000
@ $310.00 · 2025-08-19
RALLS-MORRISON DESIREE ANN
Officer
$770,970
@ $310.00 · 2025-08-06
FLATLEY EDITH MORGAN
Officer
$296,216
@ $303.50 · 2025-08-01
ERLINGER JOSEPH M
Officer
$281,221
@ $299.49 · 2025-07-23
FLATLEY EDITH MORGAN
Officer
$300,000
@ $300.00 · 2025-07-10
ERLINGER JOSEPH M
Officer
$270,920
@ $288.52 · 2025-06-23
ERLINGER JOSEPH M
President
$295,851
@ $315.07 · 2025-05-23
STEIJAERT MANUEL JM
Officer
$1.92M
@ $319.66 · 2025-05-20
ERLINGER JOSEPH M
Officer
$299,072
@ $318.50 · 2025-04-23
ERLINGER JOSEPH M
Officer
$287,616
@ $306.30 · 2025-03-24
BOYD TIFFANIE L
Officer
$309,270
@ $309.27 · 2025-02-27
ERLINGER JOSEPH M
Officer
$286,395
@ $305.00 · 2025-02-24
STEIJAERT MANUEL JM
Officer
$3.23M
@ $308.71 · 2025-02-24
GROSS MARION K
Officer
$334,871
@ $304.71 · 2025-02-21
BANNER JONATHAN
Officer
$456,495
@ $304.33 · 2025-02-21
FLATLEY EDITH MORGAN
Officer
$962,432
@ $300.76 · 2025-02-19
BANNER JONATHAN
Officer
$2.83M
@ $307.41 · 2025-02-13
KEMPCZINSKI CHRISTOPHER J
Chief Executive Officer
$3.26M
@ $310.05 · 2025-02-11
ERLINGER JOSEPH M
Officer
$84,225
@ $280.75 · 2025-01-23
GROSS MARION K
Officer
$436,134
@ $290.95 · 2025-01-02
RALLS-MORRISON DESIREE ANN
Officer
$1.98M
@ $289.89 · 2024-12-31
ERLINGER JOSEPH M
Officer
$319,919
@ $291.10 · 2024-12-23
ERLINGER JOSEPH M
Officer
$321,458
@ $292.50 · 2024-11-25
GROSS MARION K
Officer
$441,470
@ $294.51 · 2024-11-01
ERLINGER JOSEPH M
Officer
$321,326
@ $292.38 · 2024-10-23
FLATLEY EDITH MORGAN
Officer
$727,260
@ $310.00 · 2024-10-14
KEMPCZINSKI CHRISTOPHER J
Chief Executive Officer
$2.83M
@ $305.00 · 2024-09-27
KEMPCZINSKI CHRISTOPHER J
Chief Executive Officer
$5.51M
@ $300.02 · 2024-09-24
BORDEN IAN FREDERICK
Chief Financial Officer
$1.78M
@ $300.04 · 2024-09-23
ERLINGER JOSEPH M
Officer
$328,128
@ $298.57 · 2024-09-23
KEMPCZINSKI CHRISTOPHER J
Chief Executive Officer
$1.18M
@ $300.00 · 2024-09-16
BORDEN IAN FREDERICK
Chief Financial Officer
$397,500
@ $300.00 · 2024-09-16
GROSS MARION K
Officer
$428,967
@ $286.36 · 2024-09-03
ERLINGER JOSEPH M
Officer
$316,993
@ $288.70 · 2024-08-23
ERLINGER JOSEPH M
Officer
$285,740
@ $260.00 · 2024-07-23
GROSS MARION K
Officer
$371,893
@ $248.26 · 2024-07-03
ERLINGER JOSEPH M
Officer
$285,480
@ $260.00 · 2024-06-21
ERLINGER JOSEPH M
Officer
$291,378
@ $265.13 · 2024-05-23
BANNER JONATHAN
Officer
$220,016
@ $275.02 · 2024-05-10
ERLINGER JOSEPH M
Officer
$303,751
@ $276.64 · 2024-04-23
ERLINGER JOSEPH M
Officer
$312,534
@ $284.38 · 2024-03-22
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.
MCD
😐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)
MCD
⚪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)