ACHR vs. CAT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACHR and CAT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
CAT’s market capitalization of 187.12 billion USD is significantly greater than ACHR’s 6.45 billion USD, highlighting its more substantial market valuation.
ACHR’s beta of 3.13 points to significantly higher volatility compared to CAT (beta: 1.37), suggesting ACHR has greater potential for both gains and losses relative to market movements.
| Symbol | ACHR | CAT |
|---|---|---|
| Company Name | Archer Aviation Inc. | Caterpillar Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Aerospace & Defense | Agricultural - Machinery |
| CEO | Adam D. Goldstein | Joseph E. Creed CPA |
| Price | 10.17 USD | 397.86 USD |
| Market Cap | 6.45 billion USD | 187.12 billion USD |
| Beta | 3.13 | 1.37 |
| Exchange | NYSE | NYSE |
| IPO Date | December 18, 2020 | December 2, 1929 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ACHR and CAT by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ACHR
-80.09%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
ACHR has a negative Return on Equity of -80.09%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
CAT
53.66%
Agricultural - Machinery Industry
- Max
- 23.98%
- Q3
- 16.61%
- Median
- 13.29%
- Q1
- 0.18%
- Min
- -21.23%
CAT’s Return on Equity of 53.66% is exceptionally high, placing it well beyond the typical range for the Agricultural - Machinery industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Return on Invested Capital
ACHR
-44.42%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
ACHR has a negative Return on Invested Capital of -44.42%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
CAT
15.16%
Agricultural - Machinery Industry
- Max
- 16.38%
- Q3
- 9.58%
- Median
- 7.00%
- Q1
- 2.90%
- Min
- -5.40%
In the upper quartile for the Agricultural - Machinery industry, CAT’s Return on Invested Capital of 15.16% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ACHR
--
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
Net Profit Margin data for ACHR is currently unavailable.
CAT
15.71%
Agricultural - Machinery Industry
- Max
- 15.71%
- Q3
- 7.25%
- Median
- 4.16%
- Q1
- 0.06%
- Min
- -5.40%
A Net Profit Margin of 15.71% places CAT in the upper quartile for the Agricultural - Machinery industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ACHR
--
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
Operating Profit Margin data for ACHR is currently unavailable.
CAT
19.59%
Agricultural - Machinery Industry
- Max
- 21.13%
- Q3
- 13.26%
- Median
- 6.04%
- Q1
- 2.32%
- Min
- -3.90%
An Operating Profit Margin of 19.59% places CAT in the upper quartile for the Agricultural - Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ACHR | CAT |
|---|---|---|
| Return on Equity (TTM) | -80.09% | 53.66% |
| Return on Assets (TTM) | -42.29% | 11.70% |
| Return on Invested Capital (TTM) | -44.42% | 15.16% |
| Net Profit Margin (TTM) | -- | 15.71% |
| Operating Profit Margin (TTM) | -- | 19.59% |
| Gross Profit Margin (TTM) | -- | 35.49% |
Financial Strength
Current Ratio
ACHR
15.80
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
ACHR’s Current Ratio of 15.80 is exceptionally high, placing it well outside the typical range for the Aerospace & Defense industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
CAT
1.32
Agricultural - Machinery Industry
- Max
- 3.64
- Q3
- 2.69
- Median
- 1.85
- Q1
- 1.64
- Min
- 1.32
CAT’s Current Ratio of 1.32 falls into the lower quartile for the Agricultural - Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
ACHR
0.08
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.73
- Median
- 0.51
- Q1
- 0.09
- Min
- 0.00
Falling into the lower quartile for the Aerospace & Defense industry, ACHR’s Debt-to-Equity Ratio of 0.08 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
CAT
2.14
Agricultural - Machinery Industry
- Max
- 1.40
- Q3
- 1.03
- Median
- 0.81
- Q1
- 0.43
- Min
- 0.16
With a Debt-to-Equity Ratio of 2.14, CAT operates with exceptionally high leverage compared to the Agricultural - Machinery industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio
ACHR
--
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
Interest Coverage Ratio data for ACHR is currently unavailable.
CAT
25.55
Agricultural - Machinery Industry
- Max
- 9.19
- Q3
- 8.08
- Median
- 3.73
- Q1
- 1.70
- Min
- -7.20
With an Interest Coverage Ratio of 25.55, CAT demonstrates a superior capacity to service its debt, placing it well above the typical range for the Agricultural - Machinery industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ACHR | CAT |
|---|---|---|
| Current Ratio (TTM) | 15.80 | 1.32 |
| Quick Ratio (TTM) | 15.80 | 0.77 |
| Debt-to-Equity Ratio (TTM) | 0.08 | 2.14 |
| Debt-to-Asset Ratio (TTM) | 0.06 | 0.45 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.89 | 2.27 |
| Interest Coverage Ratio (TTM) | -- | 25.55 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ACHR and CAT. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ACHR
0.00%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ACHR currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
CAT
1.42%
Agricultural - Machinery Industry
- Max
- 4.17%
- Q3
- 1.81%
- Median
- 1.43%
- Q1
- 1.01%
- Min
- 0.00%
CAT’s Dividend Yield of 1.42% is consistent with its peers in the Agricultural - Machinery industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
ACHR
0.00%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ACHR has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
CAT
26.88%
Agricultural - Machinery Industry
- Max
- 78.29%
- Q3
- 54.38%
- Median
- 22.45%
- Q1
- 13.94%
- Min
- 0.00%
CAT’s Dividend Payout Ratio of 26.88% is within the typical range for the Agricultural - Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ACHR | CAT |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.42% |
| Dividend Payout Ratio (TTM) | 0.00% | 26.88% |
Valuation
Price-to-Earnings Ratio
ACHR
-7.87
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
ACHR has a negative P/E Ratio of -7.87. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
CAT
19.01
Agricultural - Machinery Industry
- Max
- 36.41
- Q3
- 24.06
- Median
- 18.38
- Q1
- 12.84
- Min
- 7.09
CAT’s P/E Ratio of 19.01 is within the middle range for the Agricultural - Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
ACHR
0.21
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
In the lower quartile for the Aerospace & Defense industry, ACHR’s Forward PEG Ratio of 0.21 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
CAT
2.25
Agricultural - Machinery Industry
- Max
- 3.45
- Q3
- 2.14
- Median
- 1.21
- Q1
- 0.57
- Min
- 0.02
The Forward PEG Ratio is often not a primary valuation metric in the Agricultural - Machinery industry.
Price-to-Sales Ratio
ACHR
--
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
P/S Ratio data for ACHR is currently unavailable.
CAT
2.96
Agricultural - Machinery Industry
- Max
- 3.13
- Q3
- 1.54
- Median
- 0.71
- Q1
- 0.46
- Min
- 0.17
CAT’s P/S Ratio of 2.96 is in the upper echelon for the Agricultural - Machinery industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
ACHR
4.00
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
ACHR’s P/B Ratio of 4.00 is within the conventional range for the Aerospace & Defense industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
CAT
10.46
Agricultural - Machinery Industry
- Max
- 3.00
- Q3
- 2.77
- Median
- 1.79
- Q1
- 1.38
- Min
- 0.50
At 10.46, CAT’s P/B Ratio is at an extreme premium to the Agricultural - Machinery industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | ACHR | CAT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -7.87 | 19.01 |
| Forward PEG Ratio (TTM) | 0.21 | 2.25 |
| Price-to-Sales Ratio (P/S, TTM) | -- | 2.96 |
| Price-to-Book Ratio (P/B, TTM) | 4.00 | 10.46 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -14.28 | 21.80 |
| EV-to-EBITDA (TTM) | -10.89 | 14.37 |
| EV-to-Sales (TTM) | -- | 3.51 |