Caterpillar (CAT) vs. GE Vernova (GEV)

Company Profile

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

Caterpillar (CAT) carries decades of public-market history since January 2, 1962, while GE Vernova (GEV) listed on March 27, 2024 — long-window comparisons have far more historical data on the CAT side.

Historical Performance

Caterpillar (CAT) has an aggressive beta of 1.62, indicating higher sensitivity to broad-market moves, while GE Vernova (GEV) is defensive at 0.37 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.

Historical Performance at a Glance

Profitability

Both Caterpillar (CAT) at 47.57% and GE Vernova (GEV) at 87.97% post Return on Equity (TTM) above their industry benchmark ranges, pointing to unusually strong headline returns on shareholders’ equity.

Both Caterpillar (CAT) at 13.33% and GE Vernova (GEV) at 23.81% rank in the top quartile for Net Profit Margin (TTM) among industry peers, indicating both companies convert revenue into net income more strongly than typical competitors.

Both Caterpillar (CAT) at 16.48% and GE Vernova (GEV) at 15.47% post Operating Profit Margin (TTM) near their industry mid-ranges, so neither company stands out strongly from peers on operating profitability.

Profitability at a Glance

Financial Strength

Both Caterpillar (CAT) at 1.35 and GE Vernova (GEV) at 0.89 run Current Ratio (MRQ) in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

GE Vernova (GEV) at 0.20 maintains Debt-to-Equity Ratio (MRQ) in the lower-leverage quartile, while Caterpillar (CAT) at 2.31 sits above its industry benchmark range.

GE Vernova (GEV) reports a problematic Interest Coverage Ratio (TTM) of -0.05; operating income or EBIT does not fully cover interest expense, so the ratio points to interest-payment strain. Meanwhile Caterpillar (CAT) reports 8.29, ranking against industry peers normally.

Financial Strength at a Glance

Growth

Revenue Growth

Revenue Growth at a Glance

EPS Growth

EPS Growth at a Glance

Dividend

Both Caterpillar (CAT) at 0.70% and GE Vernova (GEV) at 0.12% report Dividend Yield (TTM) near their industry mid-ranges, so neither company stands out strongly from peers on cash yield relative to share price.

Both Caterpillar (CAT) at 29.46% and GE Vernova (GEV) at 3.66% maintain Dividend Payout Ratio (TTM) around their industries’ median — balanced dividend policy on both sides, returning cash while leaving part of reported earnings available for reinvestment or balance-sheet flexibility.

Dividend at a Glance

Valuation

Both Caterpillar (CAT) at 42.26 and GE Vernova (GEV) at 29.92 post Price-to-Earnings Ratio (TTM) near the typical industry midpoint — neither company stands out strongly from peers on trailing earnings multiple.

Both Caterpillar (CAT) at 5.63 and GE Vernova (GEV) at 7.12 trade in the higher-multiple quartile for Price-to-Sales Ratio (TTM) among industry peers, indicating higher trailing revenue multiples than typical peers.

Both Caterpillar (CAT) at 17.66 and GE Vernova (GEV) at 16.85 sit above their industries’ benchmark ranges for Price-to-Book Ratio (MRQ), pointing to unusually high book-value multiples relative to peers.

Valuation at a Glance