AIT vs. CAT: Applied Industrial vs. Caterpillar Stock Comparison

November 11, 2026

How do Applied Industrial (AIT) and Caterpillar (CAT) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Applied Industrial (AIT) and Caterpillar (CAT) both fall under the Capital Goods industry group, but AIT is classified in Trading Companies & Distributors while CAT is classified in Machinery.

Company profile comparison for Applied Industrial (AIT) and Caterpillar (CAT)
Profile Item	AIT	CAT
Name	Applied Industrial Technologies Inc.	Caterpillar Inc.
Country/Region	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Trading Companies & Distributors	Machinery
GICS Sub-Industry	Trading Companies & Distributors	Construction Machinery & Heavy Transportation Equipment
Market Capitalization	10.35 billion USD	255.63 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	March 17, 1980	January 2, 1962
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

AIT

CAT

GSPC

Applied Industrial (AIT) vs. Caterpillar (CAT), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Applied Industrial (AIT) and Caterpillar (CAT). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Applied Industrial (AIT) and Caterpillar (CAT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Applied Industrial (AIT) and Caterpillar (CAT)
Metric	AIT	CAT
Total Return (1Y)	15.62%	6.75%
Total Return (3Y, Annualized)	24.49%	38.34%
Total Return (5Y, Annualized)	24.56%	25.28%

Risk Profile

Drawdown History

AIT

CAT

GSPC

Applied Industrial (AIT) vs. Caterpillar (CAT), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Applied Industrial (AIT) and Caterpillar (CAT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Applied Industrial (AIT) and Caterpillar (CAT)
Metric	AIT	CAT
Volatility (1Y, Annualized)	28.72%	41.33%
Beta (5Y)	0.86	1.65
Max Drawdown (5Y)	-26.42%	-47.79%
Avg. Volume (3M)	295.41K	2.82M

Risk-Adjusted Performance

Risk-Return Positioning

AIT and CAT are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Applied Industrial (AIT) and Caterpillar (CAT)
Metric	AIT	CAT
Sharpe Ratio (1Y)	0.39	0.06
Sortino Ratio (1Y)	0.53	0.08

Profitability

ROE (TTM)

Both companies show strong equity returns, but Caterpillar (CAT) at 56.14% is the standout with ROE above its industry range; Applied Industrial (AIT) at 22.51% also sits in the top quartile.

AIT

Capital Goods industry group

22.51%

Max: 40.55%
AIT: 22.51%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

CAT

Capital Goods industry group

56.14%

CAT: 56.14%
Max: 40.55%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

Applied Industrial (AIT) vs. Caterpillar (CAT): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Caterpillar (CAT) at 15.21% retains a top-quartile share of revenue as profit, ahead of Applied Industrial (AIT) at 8.39%, which keeps about the industry-typical share.

AIT

Capital Goods industry group

8.39%

Max: 27.47%
Q3: 12.10%
AIT: 8.39%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

CAT

Capital Goods industry group

15.21%

Max: 27.47%
CAT: 15.21%
Q3: 12.10%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Applied Industrial (AIT) vs. Caterpillar (CAT): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Caterpillar (CAT) at 20.19% operates in the top operating margin quartile, ahead of Applied Industrial (AIT) at 11.12%, which runs around its industry’s norm.

AIT

Capital Goods industry group

11.12%

Max: 36.60%
Q3: 18.33%
AIT: 11.12%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

CAT

Capital Goods industry group

20.19%

Max: 36.60%
CAT: 20.19%
Q3: 18.33%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

Applied Industrial (AIT) vs. Caterpillar (CAT): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Applied Industrial (AIT) and Caterpillar (CAT)
Metric	AIT	CAT
ROE (TTM)	22.51%	56.14%
ROA (TTM)	11.43%	9.09%
Net Margin (TTM)	8.39%	15.21%
Operating Margin (TTM)	11.12%	20.19%
Gross Margin (TTM)	30.40%	29.54%

Growth

Revenue Growth

Both Applied Industrial (AIT) at 8.84% and Caterpillar (CAT) at 4.29% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Applied Industrial (AIT) vs. Caterpillar (CAT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Caterpillar (CAT) reports EPS growth of -14.69%, ranked against its industry; Applied Industrial (AIT) has no EPS growth figure this period.

Applied Industrial (AIT) vs. Caterpillar (CAT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Applied Industrial (AIT) and Caterpillar (CAT)
Metric	AIT	CAT
Revenue Growth (YoY)	8.84%	4.29%
Revenue Growth (3Y CAGR)	4.02%	4.38%
EPS Growth (YoY)	--	-14.69%
EPS Growth (3Y CAGR)	7.40%	14.17%

Financial Strength

Current Ratio (MRQ)

Applied Industrial (AIT) at 2.89 keeps current ratio within its industry’s typical mid-range, while Caterpillar (CAT) at 1.42 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for CAT.

AIT

Capital Goods industry group

2.89

Max: 5.22
Q3: 2.95
AIT: 2.89
Median: 2.08
Q1: 1.43
Min: 0.36

CAT

Capital Goods industry group

1.42

Max: 5.22
Q3: 2.95
Median: 2.08
Q1: 1.43
CAT: 1.42
Min: 0.36

Applied Industrial (AIT) vs. Caterpillar (CAT): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Applied Industrial (AIT) at 0.15 keeps leverage in the lower quartile, while Caterpillar (CAT) at 2.10 sits in the higher-leverage quartile.

AIT

Capital Goods industry group

0.15

Max: 2.33
Q3: 1.12
Median: 0.60
Q1: 0.29
AIT: 0.15
Min: 0.00

CAT

Capital Goods industry group

2.10

Max: 2.33
CAT: 2.10
Q3: 1.12
Median: 0.60
Q1: 0.29
Min: 0.00

Applied Industrial (AIT) vs. Caterpillar (CAT): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Applied Industrial (AIT) and Caterpillar (CAT)
Metric	AIT	CAT
Current Ratio (MRQ)	2.89	1.42
Debt / Equity (MRQ)	0.15	2.10
Net Debt / EBITDA	0.27	2.25

Dividends

Dividend Yield (TTM)

Both Applied Industrial (AIT) at 0.71% and Caterpillar (CAT) at 1.13% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

AIT

Capital Goods industry group

0.71%

Max: 2.66%
Q3: 1.14%
AIT: 0.71%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

CAT

Capital Goods industry group

1.13%

Max: 2.66%
Q3: 1.14%
CAT: 1.13%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

Applied Industrial (AIT) vs. Caterpillar (CAT): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Both Applied Industrial (AIT) at 17.63% and Caterpillar (CAT) at 24.18% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.

AIT

Capital Goods industry group

17.63%

Max: 67.39%
Q3: 28.02%
AIT: 17.63%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

CAT

Capital Goods industry group

24.18%

Max: 67.39%
Q3: 28.02%
CAT: 24.18%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

Applied Industrial (AIT) vs. Caterpillar (CAT): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Applied Industrial (AIT) and Caterpillar (CAT)
Metric	AIT	CAT
Dividend Yield (TTM)	0.71%	1.13%
Dividend Payout Ratio (TTM)	17.63%	24.18%

Valuation

P/E Ratio (TTM)

Both Applied Industrial (AIT) at 25.10 and Caterpillar (CAT) at 21.92 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

AIT

Capital Goods industry group

25.10

Max: 59.38
Q3: 35.92
Median: 25.41
AIT: 25.10
Q1: 19.47
Min: 3.03

CAT

Capital Goods industry group

21.92

Max: 59.38
Q3: 35.92
Median: 25.41
CAT: 21.92
Q1: 19.47
Min: 3.03

Applied Industrial (AIT) vs. Caterpillar (CAT): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Applied Industrial (AIT) at 2.05 and Caterpillar (CAT) at 3.29 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

AIT

Capital Goods industry group

2.05

Max: 7.54
Q3: 3.76
Median: 2.15
AIT: 2.05
Q1: 1.03
Min: 0.03

CAT

Capital Goods industry group

3.29

Max: 7.54
Q3: 3.76
CAT: 3.29
Median: 2.15
Q1: 1.03
Min: 0.03

Applied Industrial (AIT) vs. Caterpillar (CAT): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Applied Industrial (AIT) at 5.50 sits in the upper P/B ratio quartile, and Caterpillar (CAT) at 11.90 prices even higher, above its industry range.

AIT

Capital Goods industry group

5.50

Max: 9.66
AIT: 5.50
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08

CAT

Capital Goods industry group

11.90

CAT: 11.90
Max: 9.66
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08

Applied Industrial (AIT) vs. Caterpillar (CAT): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Applied Industrial (AIT) and Caterpillar (CAT)
Metric	AIT	CAT
P/E Ratio (TTM)	25.10	21.92
P/S Ratio (TTM)	2.05	3.29
P/B Ratio (MRQ)	5.50	11.90
Free Cash Flow Yield (TTM)	3.24%	1.55%