CAT vs. ETN: Caterpillar vs. Eaton Stock Comparison

September 27, 2026

How do Caterpillar (CAT) and Eaton (ETN) 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

Caterpillar (CAT) and Eaton (ETN) both fall under the Capital Goods industry group, but CAT is classified in Machinery while ETN is classified in Electrical Equipment.

Company profile comparison for Caterpillar (CAT) and Eaton (ETN)
Profile Item	CAT	ETN
Name	Caterpillar Inc.	Eaton Corporation plc
Country/Region	United States	Ireland
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Machinery	Electrical Equipment
GICS Sub-Industry	Construction Machinery & Heavy Transportation Equipment	Electrical Components & Equipment
Market Capitalization	377.66 billion USD	170.89 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1962	June 1, 1972
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

CAT

ETN

GSPC

Caterpillar (CAT) vs. Eaton (ETN), 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 Caterpillar (CAT) and Eaton (ETN). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Caterpillar (CAT) and Eaton (ETN)
Metric	CAT	ETN
Total Return (1Y)	78.77%	21.97%
Total Return (3Y, Annualized)	46.19%	28.37%
Total Return (5Y, Annualized)	35.39%	24.97%

Risk Profile

Drawdown History

CAT

ETN

GSPC

Caterpillar (CAT) vs. Eaton (ETN), 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 Caterpillar (CAT) and Eaton (ETN). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Caterpillar (CAT) and Eaton (ETN)
Metric	CAT	ETN
Volatility (1Y, Annualized)	39.85%	39.31%
Beta (5Y)	1.59	1.14
Max Drawdown (5Y)	-34.05%	-34.46%
Avg. Volume (3M)	2.96M	2.17M

Risk-Adjusted Performance

Risk-Return Positioning

CAT and ETN 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 Caterpillar (CAT) and Eaton (ETN)
Metric	CAT	ETN
Sharpe Ratio (1Y)	1.86	0.44
Sortino Ratio (1Y)	2.97	0.63

Profitability

ROE (TTM)

Both companies show strong equity returns, but Caterpillar (CAT) at 56.97% is the standout with ROE above its industry range; Eaton (ETN) at 19.68% also sits in the top quartile.

CAT

Capital Goods industry group

56.97%

CAT: 56.97%
Max: 40.35%
Q3: 18.66%
Median: 11.55%
Q1: 2.92%
Min: -19.86%

ETN

Capital Goods industry group

19.68%

Max: 40.35%
ETN: 19.68%
Q3: 18.66%
Median: 11.55%
Q1: 2.92%
Min: -19.86%

Caterpillar (CAT) vs. Eaton (ETN): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Caterpillar (CAT) at 14.51% and Eaton (ETN) at 12.75% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

CAT

Capital Goods industry group

14.51%

Max: 27.47%
CAT: 14.51%
Q3: 11.78%
Median: 5.82%
Q1: 0.86%
Min: -14.15%

ETN

Capital Goods industry group

12.75%

Max: 27.47%
ETN: 12.75%
Q3: 11.78%
Median: 5.82%
Q1: 0.86%
Min: -14.15%

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

Operating Margin (TTM)

Caterpillar (CAT) at 22.18% operates in the top operating margin quartile, ahead of Eaton (ETN) at 16.56%, which runs around its industry’s norm.

CAT

Capital Goods industry group

22.18%

Max: 35.46%
CAT: 22.18%
Q3: 17.66%
Median: 10.67%
Q1: 4.86%
Min: -12.63%

ETN

Capital Goods industry group

16.56%

Max: 35.46%
Q3: 17.66%
ETN: 16.56%
Median: 10.67%
Q1: 4.86%
Min: -12.63%

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

Profitability Metrics

Profitability metrics for Caterpillar (CAT) and Eaton (ETN)
Metric	CAT	ETN
ROE (TTM)	56.97%	19.68%
ROA (TTM)	9.03%	7.05%
Net Margin (TTM)	14.51%	12.75%
Operating Margin (TTM)	22.18%	16.56%
Gross Margin (TTM)	29.71%	36.02%

Growth

Revenue Growth

Both Caterpillar (CAT) at 4.29% and Eaton (ETN) at 10.33% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Caterpillar (CAT) vs. Eaton (ETN): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Caterpillar (CAT) at -14.69% and Eaton (ETN) at 10.00% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Caterpillar (CAT) vs. Eaton (ETN): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Caterpillar (CAT) and Eaton (ETN)
Metric	CAT	ETN
Revenue Growth (YoY)	4.29%	10.33%
Revenue Growth (3Y CAGR)	4.38%	9.77%
EPS Growth (YoY)	-14.69%	10.00%
EPS Growth (3Y CAGR)	14.17%	19.39%

Financial Strength

Current Ratio (MRQ)

Both Caterpillar (CAT) at 1.37 and Eaton (ETN) at 1.24 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

CAT

Capital Goods industry group

1.37

Max: 5.28
Q3: 2.99
Median: 2.08
Q1: 1.45
CAT: 1.37
Min: 0.75

ETN

Capital Goods industry group

1.24

Max: 5.28
Q3: 2.99
Median: 2.08
Q1: 1.45
ETN: 1.24
Min: 0.75

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

Debt / Equity (MRQ)

Eaton (ETN) at 1.05 is near its industry mid-range for debt-to-equity ratio, while Caterpillar (CAT) at 2.33 sits above its benchmark range, pointing to a heavier debt load relative to equity.

CAT

Capital Goods industry group

2.33

CAT: 2.33
Max: 2.30
Q3: 1.09
Median: 0.58
Q1: 0.27
Min: 0.00

ETN

Capital Goods industry group

1.05

Max: 2.30
Q3: 1.09
ETN: 1.05
Median: 0.58
Q1: 0.27
Min: 0.00

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

Financial Strength Metrics

Financial strength metrics for Caterpillar (CAT) and Eaton (ETN)
Metric	CAT	ETN
Current Ratio (MRQ)	1.37	1.24
Debt / Equity (MRQ)	2.33	1.05
Net Debt / EBITDA	2.41	3.11

Dividends

Dividend Yield (TTM)

Both Caterpillar (CAT) at 0.77% and Eaton (ETN) at 0.97% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

CAT

Capital Goods industry group

0.77%

Max: 2.73%
Q3: 1.12%
CAT: 0.77%
Median: 0.18%
Q1: 0.00%
Min: 0.00%

ETN

Capital Goods industry group

0.97%

Max: 2.73%
Q3: 1.12%
ETN: 0.97%
Median: 0.18%
Q1: 0.00%
Min: 0.00%

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

Dividend Payout Ratio (TTM)

Caterpillar (CAT) at 26.01% pays out a band-typical share of earnings, while Eaton (ETN) at 43.58% distributes more than its industry norm — less retained, thinner cover.

CAT

Capital Goods industry group

26.01%

Max: 72.00%
Q3: 28.87%
CAT: 26.01%
Median: 6.31%
Q1: 0.00%
Min: 0.00%

ETN

Capital Goods industry group

43.58%

Max: 72.00%
ETN: 43.58%
Q3: 28.87%
Median: 6.31%
Q1: 0.00%
Min: 0.00%

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

Dividend Metrics

Dividend metrics for Caterpillar (CAT) and Eaton (ETN)
Metric	CAT	ETN
Dividend Yield (TTM)	0.77%	0.97%
Dividend Payout Ratio (TTM)	26.01%	43.58%

Valuation

P/E Ratio (TTM)

Caterpillar (CAT) at 35.43 is near its industry’s usual P/E ratio, while Eaton (ETN) at 44.85 sits in the richer quartile — ETN needs stronger growth or earnings quality to justify the premium.

CAT

Capital Goods industry group

35.43

Max: 68.24
Q3: 40.46
CAT: 35.43
Median: 29.13
Q1: 20.59
Min: 0.75

ETN

Capital Goods industry group

44.85

Max: 68.24
ETN: 44.85
Q3: 40.46
Median: 29.13
Q1: 20.59
Min: 0.75

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

P/S Ratio (TTM)

Both Caterpillar (CAT) at 5.05 and Eaton (ETN) at 5.69 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

CAT

Capital Goods industry group

5.05

Max: 9.14
CAT: 5.05
Q3: 4.34
Median: 2.40
Q1: 1.13
Min: 0.05

ETN

Capital Goods industry group

5.69

Max: 9.14
ETN: 5.69
Q3: 4.34
Median: 2.40
Q1: 1.13
Min: 0.05

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

P/B Ratio (MRQ)

Both look rich against book: Eaton (ETN) at 8.44 sits in the upper P/B ratio quartile, and Caterpillar (CAT) at 19.47 prices even higher, above its industry range.

CAT

Capital Goods industry group

19.47

CAT: 19.47
Max: 11.34
Q3: 5.74
Median: 3.30
Q1: 1.96
Min: -3.28

ETN

Capital Goods industry group

8.44

Max: 11.34
ETN: 8.44
Q3: 5.74
Median: 3.30
Q1: 1.96
Min: -3.28

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

Valuation Metrics

Valuation metrics for Caterpillar (CAT) and Eaton (ETN)
Metric	CAT	ETN
P/E Ratio (TTM)	35.43	44.85
P/S Ratio (TTM)	5.05	5.69
P/B Ratio (MRQ)	19.47	8.44
Free Cash Flow Yield (TTM)	1.34%	1.82%