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

Updated on August 19, 2025

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

Company Profile

Symbol	CAT	HON
Company Name	Caterpillar Inc.	Honeywell International Inc.
Country	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry	Machinery	Industrial Conglomerates
Market Capitalization	193.81 billion USD	139.51 billion USD
Exchange	NYSE	NasdaqGS
Listing Date	January 2, 1962	January 2, 1962
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of CAT and HON 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 vs. HON: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	CAT	HON
5-Day Price Return	-0.82%	1.46%
13-Week Price Return	20.77%	0.18%
26-Week Price Return	13.20%	4.73%
52-Week Price Return	23.11%	11.66%
Month-to-Date Return	-5.55%	-1.17%
Year-to-Date Return	14.04%	-2.72%
10-Day Avg. Volume	3.70M	3.21M
3-Month Avg. Volume	2.91M	3.93M
3-Month Volatility	22.05%	20.23%
Beta	1.46	1.07

Profitability

Return on Equity (TTM)

CAT

49.92%

Machinery Industry

Max: 34.68%
Q3: 19.06%
Median: 13.13%
Q1: 8.53%
Min: -4.87%

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.

HON

32.86%

Industrial Conglomerates Industry

Max: 21.93%
Q3: 14.23%
Median: 7.81%
Q1: 5.91%
Min: -3.58%

HON’s Return on Equity of 32.86% is exceptionally high, placing it well beyond the typical range for the Industrial Conglomerates industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

CAT vs. HON: A comparison of their Return on Equity (TTM) against their respective Machinery and Industrial Conglomerates industry benchmarks.

Net Profit Margin (TTM)

CAT

14.95%

Machinery Industry

Max: 19.74%
Q3: 11.24%
Median: 8.13%
Q1: 5.38%
Min: -1.11%

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.

HON

14.30%

Industrial Conglomerates Industry

Max: 18.70%
Q3: 12.58%
Median: 9.26%
Q1: 3.87%
Min: -2.26%

A Net Profit Margin of 14.30% places HON in the upper quartile for the Industrial Conglomerates industry, signifying strong profitability and more effective cost management than most of its peers.

CAT vs. HON: A comparison of their Net Profit Margin (TTM) against their respective Machinery and Industrial Conglomerates industry benchmarks.

Operating Profit Margin (TTM)

CAT

18.23%

Machinery Industry

Max: 26.63%
Q3: 16.15%
Median: 11.27%
Q1: 7.72%
Min: -4.91%

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.

HON

17.81%

Industrial Conglomerates Industry

Max: 25.69%
Q3: 17.03%
Median: 12.85%
Q1: 8.81%
Min: -0.73%

An Operating Profit Margin of 17.81% places HON in the upper quartile for the Industrial Conglomerates industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

CAT vs. HON: A comparison of their Operating Profit Margin (TTM) against their respective Machinery and Industrial Conglomerates industry benchmarks.

Profitability at a Glance

Symbol	CAT	HON
Return on Equity (TTM)	49.92%	32.86%
Return on Assets (TTM)	10.81%	7.56%
Net Profit Margin (TTM)	14.95%	14.30%
Operating Profit Margin (TTM)	18.23%	17.81%
Gross Profit Margin (TTM)	36.53%	38.08%

Financial Strength

Current Ratio (MRQ)

CAT

1.34

Machinery Industry

Max: 3.83
Q3: 2.32
Median: 1.72
Q1: 1.28
Min: 0.78

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.

HON

1.29

Industrial Conglomerates Industry

Max: 2.19
Q3: 1.64
Median: 1.38
Q1: 1.13
Min: 0.61

HON’s Current Ratio of 1.29 aligns with the median group of the Industrial Conglomerates industry, indicating that its short-term liquidity is in line with its sector peers.

CAT vs. HON: A comparison of their Current Ratio (MRQ) against their respective Machinery and Industrial Conglomerates industry benchmarks.

Debt-to-Equity Ratio (MRQ)

CAT

2.18

Machinery Industry

Max: 1.49
Q3: 0.75
Median: 0.44
Q1: 0.26
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.

HON

2.27

Industrial Conglomerates Industry

Max: 2.27
Q3: 1.47
Median: 0.99
Q1: 0.66
Min: 0.21

HON’s leverage is in the upper quartile of the Industrial Conglomerates industry, with a Debt-to-Equity Ratio of 2.27. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

CAT vs. HON: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Machinery and Industrial Conglomerates industry benchmarks.

Interest Coverage Ratio (TTM)

CAT

12.53

Machinery Industry

Max: 67.55
Q3: 33.79
Median: 13.87
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.

HON

7.76

Industrial Conglomerates Industry

Max: 11.17
Q3: 8.02
Median: 5.88
Q1: 2.73
Min: -2.15

HON’s Interest Coverage Ratio of 7.76 is positioned comfortably within the norm for the Industrial Conglomerates industry, indicating a standard and healthy capacity to cover its interest payments.

CAT vs. HON: A comparison of their Interest Coverage Ratio (TTM) against their respective Machinery and Industrial Conglomerates industry benchmarks.

Financial Strength at a Glance

Symbol	CAT	HON
Current Ratio (MRQ)	1.34	1.29
Quick Ratio (MRQ)	0.72	0.97
Debt-to-Equity Ratio (MRQ)	2.18	2.27
Interest Coverage Ratio (TTM)	12.53	7.76

Growth

Revenue Growth

CAT vs. HON: 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

CAT vs. HON: 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)

CAT

1.40%

Machinery Industry

Max: 5.32%
Q3: 2.84%
Median: 1.87%
Q1: 1.09%
Min: 0.00%

CAT’s Dividend Yield of 1.40% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.

HON

2.10%

Industrial Conglomerates Industry

Max: 10.17%
Q3: 5.53%
Median: 3.14%
Q1: 1.88%
Min: 0.00%

HON’s Dividend Yield of 2.10% is consistent with its peers in the Industrial Conglomerates industry, providing a dividend return that is standard for its sector.

CAT vs. HON: A comparison of their Dividend Yield (TTM) against their respective Machinery and Industrial Conglomerates industry benchmarks.

Dividend Payout Ratio (TTM)

CAT

28.60%

Machinery Industry

Max: 202.17%
Q3: 98.65%
Median: 55.54%
Q1: 29.03%
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.

HON

51.34%

Industrial Conglomerates Industry

Max: 181.91%
Q3: 95.57%
Median: 50.60%
Q1: 35.01%
Min: 1.76%

HON’s Dividend Payout Ratio of 51.34% is within the typical range for the Industrial Conglomerates industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

CAT vs. HON: A comparison of their Dividend Payout Ratio (TTM) against their respective Machinery and Industrial Conglomerates industry benchmarks.

Dividend at a Glance

Symbol	CAT	HON
Dividend Yield (TTM)	1.40%	2.10%
Dividend Payout Ratio (TTM)	28.60%	51.34%

Valuation

Price-to-Earnings Ratio (TTM)

CAT

20.49

Machinery Industry

Max: 53.66
Q3: 31.29
Median: 22.00
Q1: 16.18
Min: 7.00

CAT’s P/E Ratio of 20.49 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.

HON

24.40

Industrial Conglomerates Industry

Max: 36.98
Q3: 22.09
Median: 12.18
Q1: 8.93
Min: 5.63

A P/E Ratio of 24.40 places HON in the upper quartile for the Industrial Conglomerates industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

CAT vs. HON: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Machinery and Industrial Conglomerates industry benchmarks.

Price-to-Sales Ratio (TTM)

CAT

3.06

Machinery Industry

Max: 5.04
Q3: 2.72
Median: 1.67
Q1: 1.04
Min: 0.24

CAT’s P/S Ratio of 3.06 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.

HON

3.49

Industrial Conglomerates Industry

Max: 3.60
Q3: 2.10
Median: 0.68
Q1: 0.42
Min: 0.11

HON’s P/S Ratio of 3.49 is in the upper echelon for the Industrial Conglomerates 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 vs. HON: A comparison of their Price-to-Sales Ratio (TTM) against their respective Machinery and Industrial Conglomerates industry benchmarks.

Price-to-Book Ratio (MRQ)

CAT

9.78

Machinery Industry

Max: 7.23
Q3: 3.90
Median: 2.52
Q1: 1.47
Min: 0.49

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.

HON

9.30

Industrial Conglomerates Industry

Max: 4.89
Q3: 2.51
Median: 1.06
Q1: 0.60
Min: 0.27

At 9.30, HON’s P/B Ratio is at an extreme premium to the Industrial Conglomerates 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.

CAT vs. HON: A comparison of their Price-to-Book Ratio (MRQ) against their respective Machinery and Industrial Conglomerates industry benchmarks.

Valuation at a Glance

Symbol	CAT	HON
Price-to-Earnings Ratio (TTM)	20.49	24.40
Price-to-Sales Ratio (TTM)	3.06	3.49
Price-to-Book Ratio (MRQ)	9.78	9.30
Price-to-Free Cash Flow Ratio (TTM)	24.99	28.08