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

Updated on July 7, 2025

Here’s a clear look at AVAV 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 AVAV’s 11.24 billion USD, highlighting its more substantial market valuation.

CAT carries a higher beta at 1.37, indicating it’s more sensitive to market moves, while AVAV (beta: 0.81) exhibits greater stability.

Symbol	AVAV	CAT
Company Name	AeroVironment, Inc.	Caterpillar Inc.
Country	US	US
Sector	Industrials	Industrials
Industry	Aerospace & Defense	Agricultural - Machinery
CEO	Wahid Nawabi	Joseph E. Creed CPA
Price	246.23 USD	397.86 USD
Market Cap	11.24 billion USD	187.12 billion USD
Beta	0.81	1.37
Exchange	NASDAQ	NYSE
IPO Date	January 23, 2007	December 2, 1929
ADR	No	No

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.

Profitability

Return on Equity

AVAV

5.06%

Aerospace & Defense Industry

Max: 42.57%
Q3: 16.67%
Median: 8.39%
Q1: -0.77%
Min: -23.36%

AVAV’s Return on Equity of 5.06% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

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.

AVAV vs. CAT: A comparison of their ROE against their respective Aerospace & Defense and Agricultural - Machinery industry benchmarks.

Return on Invested Capital

AVAV

4.16%

Aerospace & Defense Industry

Max: 23.42%
Q3: 8.86%
Median: 5.47%
Q1: -5.60%
Min: -22.46%

AVAV’s Return on Invested Capital of 4.16% is in line with the norm for the Aerospace & Defense industry, reflecting a standard level of efficiency in generating profits from its capital base.

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.

AVAV vs. CAT: A comparison of their ROIC against their respective Aerospace & Defense and Agricultural - Machinery industry benchmarks.

Net Profit Margin

AVAV

5.54%

Aerospace & Defense Industry

Max: 22.67%
Q3: 8.04%
Median: 4.95%
Q1: -5.07%
Min: -16.58%

AVAV’s Net Profit Margin of 5.54% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.

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.

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

Operating Profit Margin

AVAV

5.18%

Aerospace & Defense Industry

Max: 22.01%
Q3: 11.49%
Median: 8.96%
Q1: 3.77%
Min: -4.96%

AVAV’s Operating Profit Margin of 5.18% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.

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.

AVAV vs. CAT: A comparison of their Operating Margin against their respective Aerospace & Defense and Agricultural - Machinery industry benchmarks.

Profitability at a Glance

Symbol	AVAV	CAT
Return on Equity (TTM)	5.06%	53.66%
Return on Assets (TTM)	3.89%	11.70%
Return on Invested Capital (TTM)	4.16%	15.16%
Net Profit Margin (TTM)	5.54%	15.71%
Operating Profit Margin (TTM)	5.18%	19.59%
Gross Profit Margin (TTM)	40.23%	35.49%

Financial Strength

Current Ratio

AVAV

3.52

Aerospace & Defense Industry

Max: 5.13
Q3: 3.36
Median: 2.16
Q1: 1.20
Min: 0.41

AVAV’s Current Ratio of 3.52 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

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.

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

Debt-to-Equity Ratio

AVAV

0.04

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, AVAV’s Debt-to-Equity Ratio of 0.04 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.

AVAV vs. CAT: A comparison of their D/E Ratio against their respective Aerospace & Defense and Agricultural - Machinery industry benchmarks.

Interest Coverage Ratio

AVAV

245.75

Aerospace & Defense Industry

Max: 12.62
Q3: 7.38
Median: 2.95
Q1: 1.68
Min: -6.68

With an Interest Coverage Ratio of 245.75, AVAV demonstrates a superior capacity to service its debt, placing it well above the typical range for the Aerospace & Defense industry. This stems from either robust earnings or a conservative debt load.

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.

AVAV vs. CAT: A comparison of their Interest Coverage against their respective Aerospace & Defense and Agricultural - Machinery industry benchmarks.

Financial Strength at a Glance

Symbol	AVAV	CAT
Current Ratio (TTM)	3.52	1.32
Quick Ratio (TTM)	2.69	0.77
Debt-to-Equity Ratio (TTM)	0.04	2.14
Debt-to-Asset Ratio (TTM)	0.03	0.45
Net Debt-to-EBITDA Ratio (TTM)	-0.11	2.27
Interest Coverage Ratio (TTM)	245.75	25.55

Growth

The following charts compare key year-over-year (YoY) growth metrics for AVAV and CAT. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AVAV vs. CAT: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AVAV vs. CAT: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AVAV vs. CAT: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

AVAV

0.00%

Aerospace & Defense Industry

Max: 6.00%
Q3: 0.66%
Median: 0.00%
Q1: 0.00%
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

1.42%

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.

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

Dividend Payout Ratio

AVAV

0.00%

Aerospace & Defense Industry

Max: 172.02%
Q3: 32.47%
Median: 0.00%
Q1: 0.00%
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

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.

AVAV vs. CAT: A comparison of their Payout Ratio against their respective Aerospace & Defense and Agricultural - Machinery industry benchmarks.

Dividend at a Glance

Symbol	AVAV	CAT
Dividend Yield (TTM)	0.00%	1.42%
Dividend Payout Ratio (TTM)	0.00%	26.88%

Valuation

Price-to-Earnings Ratio

AVAV

158.45

Aerospace & Defense Industry

Max: 75.34
Q3: 54.40
Median: 38.63
Q1: 26.10
Min: 16.44

At 158.45, AVAV’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Aerospace & Defense industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

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.

AVAV vs. CAT: A comparison of their P/E Ratio against their respective Aerospace & Defense and Agricultural - Machinery industry benchmarks.

Forward P/E to Growth Ratio

AVAV

4.65

Aerospace & Defense Industry

Max: 10.68
Q3: 5.36
Median: 2.31
Q1: 1.47
Min: 0.01

AVAV’s Forward PEG Ratio of 4.65 is within the middle range of its peers in the Aerospace & Defense industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.

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.

AVAV vs. CAT: A comparison of their Forward PEG Ratio against their respective Aerospace & Defense and Agricultural - Machinery industry benchmarks.

Price-to-Sales Ratio

AVAV

14.27

Aerospace & Defense Industry

Max: 19.34
Q3: 9.54
Median: 2.71
Q1: 1.59
Min: 0.35

AVAV’s P/S Ratio of 14.27 is in the upper echelon for the Aerospace & Defense 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.

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.

AVAV vs. CAT: A comparison of their P/S Ratio against their respective Aerospace & Defense and Agricultural - Machinery industry benchmarks.

Price-to-Book Ratio

AVAV

7.80

Aerospace & Defense Industry

Max: 16.08
Q3: 8.12
Median: 4.12
Q1: 2.69
Min: 0.69

AVAV’s P/B Ratio of 7.80 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.

AVAV vs. CAT: A comparison of their P/B Ratio against their respective Aerospace & Defense and Agricultural - Machinery industry benchmarks.

Valuation at a Glance

Symbol	AVAV	CAT
Price-to-Earnings Ratio (P/E, TTM)	158.45	19.01
Forward PEG Ratio (TTM)	4.65	2.25
Price-to-Sales Ratio (P/S, TTM)	14.27	2.96
Price-to-Book Ratio (P/B, TTM)	7.80	10.46
Price-to-Free Cash Flow Ratio (P/FCF, TTM)	-821.15	21.80
EV-to-EBITDA (TTM)	188.22	14.37
EV-to-Sales (TTM)	14.26	3.51