AVAV vs. CAT: A Head-to-Head Stock Comparison

Updated on October 14, 2025

Here’s a clear look at AVAV and CAT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

Symbol	AVAV	CAT
Company Name	AeroVironment, Inc.	Caterpillar Inc.
Country	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry	Aerospace & Defense	Machinery
Market Capitalization	20.35 billion USD	235.23 billion USD
Exchange	NasdaqGS	NYSE
Listing Date	January 23, 2007	January 2, 1962
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of AVAV 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.

AVAV vs. CAT: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	AVAV	CAT
5-Day Price Return	13.11%	2.35%
13-Week Price Return	72.11%	24.85%
26-Week Price Return	246.55%	64.22%
52-Week Price Return	98.51%	26.08%
Month-to-Date Return	29.41%	5.23%
Year-to-Date Return	164.81%	38.42%
10-Day Avg. Volume	1.46M	2.79M
3-Month Avg. Volume	1.42M	2.78M
3-Month Volatility	48.69%	23.06%
Beta	1.11	1.55

Profitability

Return on Equity (TTM)

AVAV

-2.55%

Aerospace & Defense Industry

Max: 37.11%
Q3: 20.14%
Median: 11.72%
Q1: 6.30%
Min: -6.24%

AVAV has a negative Return on Equity of -2.55%. 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

49.92%

Machinery Industry

Max: 33.68%
Q3: 20.05%
Median: 12.37%
Q1: 8.67%
Min: -7.69%

CAT’s Return on Equity of 49.92% is exceptionally high, placing it well beyond the typical range for the Machinery industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

AVAV vs. CAT: A comparison of their Return on Equity (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Net Profit Margin (TTM)

AVAV

-4.14%

Aerospace & Defense Industry

Max: 13.66%
Q3: 8.61%
Median: 6.59%
Q1: 4.92%
Min: 1.01%

AVAV has a negative Net Profit Margin of -4.14%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

CAT

14.95%

Machinery Industry

Max: 19.72%
Q3: 11.07%
Median: 7.62%
Q1: 5.05%
Min: -1.52%

A Net Profit Margin of 14.95% places CAT in the upper quartile for the Machinery industry, signifying strong profitability and more effective cost management than most of its peers.

AVAV vs. CAT: A comparison of their Net Profit Margin (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Operating Profit Margin (TTM)

AVAV

-4.75%

Aerospace & Defense Industry

Max: 22.35%
Q3: 12.83%
Median: 9.29%
Q1: 6.38%
Min: -2.15%

AVAV has a negative Operating Profit Margin of -4.75%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

CAT

18.23%

Machinery Industry

Max: 26.63%
Q3: 15.99%
Median: 11.27%
Q1: 7.72%
Min: -0.51%

An Operating Profit Margin of 18.23% places CAT in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AVAV vs. CAT: A comparison of their Operating Profit Margin (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Profitability at a Glance

Symbol	AVAV	CAT
Return on Equity (TTM)	-2.55%	49.92%
Return on Assets (TTM)	-2.04%	10.81%
Net Profit Margin (TTM)	-4.14%	14.95%
Operating Profit Margin (TTM)	-4.75%	18.23%
Gross Profit Margin (TTM)	30.60%	36.53%

Financial Strength

Current Ratio (MRQ)

AVAV

5.96

Aerospace & Defense Industry

Max: 3.35
Q3: 2.03
Median: 1.24
Q1: 1.04
Min: 0.77

AVAV’s Current Ratio of 5.96 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

1.34

Machinery Industry

Max: 3.13
Q3: 2.12
Median: 1.72
Q1: 1.34
Min: 0.77

CAT’s Current Ratio of 1.34 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.

AVAV vs. CAT: A comparison of their Current Ratio (MRQ) against their respective Aerospace & Defense and Machinery industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AVAV

0.16

Aerospace & Defense Industry

Max: 1.72
Q3: 0.96
Median: 0.63
Q1: 0.37
Min: 0.03

Falling into the lower quartile for the Aerospace & Defense industry, AVAV’s Debt-to-Equity Ratio of 0.16 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

CAT

2.18

Machinery Industry

Max: 1.56
Q3: 0.79
Median: 0.44
Q1: 0.27
Min: 0.00

With a Debt-to-Equity Ratio of 2.18, CAT operates with exceptionally high leverage compared to the Machinery industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

AVAV vs. CAT: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Aerospace & Defense and Machinery industry benchmarks.

Interest Coverage Ratio (TTM)

AVAV

20.72

Aerospace & Defense Industry

Max: 36.57
Q3: 19.08
Median: 7.25
Q1: 2.65
Min: -7.63

AVAV’s Interest Coverage Ratio of 20.72 is in the upper quartile for the Aerospace & Defense industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

CAT

12.53

Machinery Industry

Max: 81.58
Q3: 37.68
Median: 13.76
Q1: 7.97
Min: -1.43

CAT’s Interest Coverage Ratio of 12.53 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.

AVAV vs. CAT: A comparison of their Interest Coverage Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Financial Strength at a Glance

Symbol	AVAV	CAT
Current Ratio (MRQ)	5.96	1.34
Quick Ratio (MRQ)	4.98	0.72
Debt-to-Equity Ratio (MRQ)	0.16	2.18
Interest Coverage Ratio (TTM)	20.72	12.53

Growth

Revenue Growth

AVAV vs. CAT: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AVAV vs. CAT: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AVAV

0.00%

Aerospace & Defense Industry

Max: 2.72%
Q3: 1.45%
Median: 0.48%
Q1: 0.08%
Min: 0.00%

AVAV 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

1.14%

Machinery Industry

Max: 4.55%
Q3: 2.66%
Median: 1.90%
Q1: 1.23%
Min: 0.00%

CAT’s Dividend Yield of 1.14% is in the lower quartile for the Machinery industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

AVAV vs. CAT: A comparison of their Dividend Yield (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Dividend Payout Ratio (TTM)

AVAV

0.00%

Aerospace & Defense Industry

Max: 110.40%
Q3: 50.43%
Median: 17.11%
Q1: 0.46%
Min: 0.00%

AVAV 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

28.60%

Machinery Industry

Max: 198.34%
Q3: 101.42%
Median: 62.79%
Q1: 29.85%
Min: 0.00%

CAT’s Dividend Payout Ratio of 28.60% is in the lower quartile for the Machinery industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

AVAV vs. CAT: A comparison of their Dividend Payout Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Dividend at a Glance

Symbol	AVAV	CAT
Dividend Yield (TTM)	0.00%	1.14%
Dividend Payout Ratio (TTM)	0.00%	28.60%

Valuation

Price-to-Earnings Ratio (TTM)

AVAV

Aerospace & Defense Industry

Max: 67.20
Q3: 55.74
Median: 33.28
Q1: 27.49
Min: 15.02

P/E Ratio data for AVAV is currently unavailable.

CAT

25.09

Machinery Industry

Max: 47.95
Q3: 30.11
Median: 22.35
Q1: 16.56
Min: 6.48

CAT’s P/E Ratio of 25.09 is within the middle range for the 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.

AVAV vs. CAT: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Price-to-Sales Ratio (TTM)

AVAV

18.07

Aerospace & Defense Industry

Max: 9.06
Q3: 4.87
Median: 2.47
Q1: 1.61
Min: 0.33

With a P/S Ratio of 18.07, AVAV trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

CAT

3.75

Machinery Industry

Max: 4.97
Q3: 2.76
Median: 1.65
Q1: 1.04
Min: 0.04

CAT’s P/S Ratio of 3.75 is in the upper echelon for the 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.

AVAV vs. CAT: A comparison of their Price-to-Sales Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Price-to-Book Ratio (MRQ)

AVAV

3.02

Aerospace & Defense Industry

Max: 14.90
Q3: 8.93
Median: 4.70
Q1: 3.03
Min: 0.83

AVAV’s P/B Ratio of 3.02 is in the lower quartile for the Aerospace & Defense industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

CAT

9.78

Machinery Industry

Max: 7.29
Q3: 4.06
Median: 2.67
Q1: 1.54
Min: 0.52

At 9.78, CAT’s P/B Ratio is at an extreme premium to the 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.

AVAV vs. CAT: A comparison of their Price-to-Book Ratio (MRQ) against their respective Aerospace & Defense and Machinery industry benchmarks.

Valuation at a Glance

Symbol	AVAV	CAT
Price-to-Earnings Ratio (TTM)	--	25.09
Price-to-Sales Ratio (TTM)	18.07	3.75
Price-to-Book Ratio (MRQ)	3.02	9.78
Price-to-Free Cash Flow Ratio (TTM)	273.80	30.60