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

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

Company Profile

SymbolCATETN
Company NameCaterpillar Inc.Eaton Corporation plc
CountryUnited StatesIreland
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryMachineryElectrical Equipment
GICS Sub-IndustryConstruction Machinery & Heavy Transportation EquipmentElectrical Components & Equipment
Market Capitalization426.87 billion USD162.70 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962June 1, 1972
Security TypeCommon StockCommon Stock

CAT’s market capitalization (426.87 billion USD) is substantially larger than ETN’s (162.70 billion USD), indicating a significant difference in their market valuations.

Historical Performance

This chart compares the performance of CAT and ETN 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.

CAT
ETN
Loading price history…
CAT vs. ETN: Growth of a $10,000 investment over the past five years.

Historical Performance at a Glance

SymbolCATETN
5-Day Price Return2.45%1.98%
13-Week Price Return27.62%12.09%
26-Week Price Return62.43%8.39%
52-Week Price Return184.62%35.22%
Month-to-Date Return4.12%-3.24%
Year-to-Date Return61.78%31.55%
10-Day Avg. Volume2.81M3.33M
3-Month Avg. Volume2.70M2.81M
3-Month Volatility42.24%38.67%
Beta1.641.24

With betas of 1.64 for CAT and 1.24 for ETN, both stocks show similar sensitivity to overall market movements.

Profitability

Return on Equity (TTM)

CAT

45.15%

Machinery Industry
Max
34.97%
Q3
17.74%
Median
11.28%
Q1
4.99%
Min
-12.33%

CAT’s Return on Equity of 45.15% 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.

ETN

21.70%

Electrical Equipment Industry
Max
42.06%
Q3
26.89%
Median
15.05%
Q1
-10.76%
Min
-62.42%

ETN’s Return on Equity of 21.70% is on par with the norm for the Electrical Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

CAT vs. ETN: A comparison of their Return on Equity (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Net Profit Margin (TTM)

CAT

13.14%

Machinery Industry
Max
22.96%
Q3
12.39%
Median
7.72%
Q1
3.54%
Min
-8.68%

A Net Profit Margin of 13.14% places CAT in the upper quartile for the Machinery industry, signifying strong profitability and more effective cost management than most of its peers.

ETN

15.22%

Electrical Equipment Industry
Max
46.70%
Q3
16.13%
Median
10.37%
Q1
-39.83%
Min
-107.51%

ETN’s Net Profit Margin of 15.22% is aligned with the median group of its peers in the Electrical Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.

CAT vs. ETN: A comparison of their Net Profit Margin (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Operating Profit Margin (TTM)

CAT

16.50%

Machinery Industry
Max
30.03%
Q3
17.70%
Median
13.51%
Q1
8.16%
Min
-3.23%

CAT’s Operating Profit Margin of 16.50% is around the midpoint for the Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.

ETN

19.18%

Electrical Equipment Industry
Max
25.78%
Q3
18.25%
Median
11.54%
Q1
-25.81%
Min
-37.27%

An Operating Profit Margin of 19.18% places ETN in the upper quartile for the Electrical Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

CAT vs. ETN: A comparison of their Operating Profit Margin (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Profitability at a Glance

SymbolCATETN
Return on Equity (TTM)45.15%21.70%
Return on Assets (TTM)9.67%10.12%
Net Profit Margin (TTM)13.14%15.22%
Operating Profit Margin (TTM)16.50%19.18%
Gross Profit Margin (TTM)34.22%37.81%

Financial Strength

Current Ratio (MRQ)

CAT

1.44

Machinery Industry
Max
4.85
Q3
3.02
Median
2.23
Q1
1.69
Min
0.71

CAT’s Current Ratio of 1.44 falls into the lower quartile for the Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ETN

1.32

Electrical Equipment Industry
Max
2.75
Q3
2.73
Median
2.05
Q1
1.35
Min
0.73

ETN’s Current Ratio of 1.32 falls into the lower quartile for the Electrical Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

CAT vs. ETN: A comparison of their Current Ratio (MRQ) against their respective Machinery and Electrical Equipment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

CAT

2.03

Machinery Industry
Max
1.24
Q3
0.73
Median
0.53
Q1
0.27
Min
0.00

With a Debt-to-Equity Ratio of 2.03, 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.

ETN

0.51

Electrical Equipment Industry
Max
1.40
Q3
0.87
Median
0.57
Q1
0.19
Min
0.00

ETN’s Debt-to-Equity Ratio of 0.51 is typical for the Electrical Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

CAT vs. ETN: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Machinery and Electrical Equipment industry benchmarks.

Interest Coverage Ratio (TTM)

CAT

8.29

Machinery Industry
Max
28.00
Q3
15.73
Median
6.91
Q1
3.90
Min
-9.44

CAT’s Interest Coverage Ratio of 8.29 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.

ETN

21.46

Electrical Equipment Industry
Max
23.13
Q3
9.92
Median
0.32
Q1
-9.30
Min
-29.00

ETN’s Interest Coverage Ratio of 21.46 is in the upper quartile for the Electrical Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

CAT vs. ETN: A comparison of their Interest Coverage Ratio (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Financial Strength at a Glance

SymbolCATETN
Current Ratio (MRQ)1.441.32
Quick Ratio (MRQ)0.860.74
Debt-to-Equity Ratio (MRQ)2.030.51
Interest Coverage Ratio (TTM)8.2921.46

Growth

Revenue Growth

CAT vs. ETN: A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

SymbolCATETN
Revenue Growth (MRQ vs Prior YoY)18.00%13.06%
Revenue Growth (TTM vs Prior YoY)4.29%-17.92%
3-Year Revenue CAGR4.38%9.77%
5-Year Revenue CAGR10.12%8.98%

EPS Growth

CAT vs. ETN: A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

SymbolCATETN
EPS Growth (MRQ vs Prior YoY)-11.46%18.49%
EPS Growth (TTM vs Prior YoY)-14.70%10.00%
3-Year EPS CAGR14.16%19.38%
5-Year EPS CAGR28.05%24.52%

Dividend

Dividend Yield (TTM)

CAT

0.64%

Machinery Industry
Max
3.37%
Q3
1.48%
Median
0.88%
Q1
0.12%
Min
0.00%

CAT’s Dividend Yield of 0.64% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.

ETN

1.02%

Electrical Equipment Industry
Max
1.17%
Q3
0.53%
Median
0.09%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.02%, ETN offers a more attractive income stream than most of its peers in the Electrical Equipment industry, signaling a strong commitment to shareholder returns.

CAT vs. ETN: A comparison of their Dividend Yield (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Dividend Payout Ratio (TTM)

CAT

30.94%

Machinery Industry
Max
62.41%
Q3
36.52%
Median
24.35%
Q1
11.08%
Min
0.00%

CAT’s Dividend Payout Ratio of 30.94% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ETN

39.76%

Electrical Equipment Industry
Max
52.06%
Q3
23.62%
Median
1.83%
Q1
0.00%
Min
0.00%

ETN’s Dividend Payout Ratio of 39.76% is in the upper quartile for the Electrical Equipment industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

CAT vs. ETN: A comparison of their Dividend Payout Ratio (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Dividend at a Glance

SymbolCATETN
Dividend Yield (TTM)0.64%1.02%
Dividend Payout Ratio (TTM)30.94%39.76%

Valuation

Price-to-Earnings Ratio (TTM)

CAT

47.98

Machinery Industry
Max
49.80
Q3
35.74
Median
28.09
Q1
20.92
Min
10.47

A P/E Ratio of 47.98 places CAT in the upper quartile for the Machinery industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ETN

38.98

Electrical Equipment Industry
Max
100.52
Q3
61.53
Median
36.90
Q1
29.20
Min
6.14

ETN’s P/E Ratio of 38.98 is within the middle range for the Electrical Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

CAT vs. ETN: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

CAT

6.31

Machinery Industry
Max
6.31
Q3
3.85
Median
2.93
Q1
1.39
Min
0.18

CAT’s P/S Ratio of 6.31 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.

ETN

7.81

Electrical Equipment Industry
Max
12.71
Q3
10.49
Median
6.22
Q1
4.29
Min
1.10

ETN’s P/S Ratio of 7.81 aligns with the market consensus for the Electrical Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

CAT vs. ETN: A comparison of their Price-to-Sales Ratio (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

CAT

12.58

Machinery Industry
Max
7.75
Q3
4.38
Median
3.08
Q1
1.77
Min
0.29

At 12.58, 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.

ETN

6.37

Electrical Equipment Industry
Max
11.68
Q3
6.90
Median
5.06
Q1
2.93
Min
0.46

ETN’s P/B Ratio of 6.37 is within the conventional range for the Electrical Equipment 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 vs. ETN: A comparison of their Price-to-Book Ratio (MRQ) against their respective Machinery and Electrical Equipment industry benchmarks.

Valuation at a Glance

SymbolCATETN
Price-to-Earnings Ratio (TTM)47.9838.98
Price-to-Sales Ratio (TTM)6.317.81
Price-to-Book Ratio (MRQ)12.586.37
Price-to-Free Cash Flow Ratio (TTM)57.1944.87