CAT vs. HWM: Caterpillar vs. Howmet Aerospace Stock Comparison

November 11, 2026

How do Caterpillar (CAT) and Howmet Aerospace (HWM) 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 Howmet Aerospace (HWM) both fall under the Capital Goods industry group, but CAT is classified in Machinery while HWM is classified in Aerospace & Defense.

Company profile comparison for Caterpillar (CAT) and Howmet Aerospace (HWM)
Profile Item	CAT	HWM
Name	Caterpillar Inc.	Howmet Aerospace Inc.
Country/Region	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Machinery	Aerospace & Defense
GICS Sub-Industry	Construction Machinery & Heavy Transportation Equipment	Aerospace & Defense
Market Capitalization	255.63 billion USD	81.84 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1962	November 1, 2016
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

CAT

HWM

GSPC

Caterpillar (CAT) vs. Howmet Aerospace (HWM), 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

Loading price history…

Trailing total returns for Caterpillar (CAT) and Howmet Aerospace (HWM). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…

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

Performance Metrics

Price performance metrics for Caterpillar (CAT) and Howmet Aerospace (HWM)
Metric	CAT	HWM
Total Return (1Y)	6.75%	5.06%
Total Return (3Y, Annualized)	38.34%	64.83%
Total Return (5Y, Annualized)	25.28%	46.04%

Risk Profile

Drawdown History

CAT

HWM

GSPC

Caterpillar (CAT) vs. Howmet Aerospace (HWM), 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

Loading price history…

Distribution of monthly total returns for Caterpillar (CAT) and Howmet Aerospace (HWM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Caterpillar (CAT) and Howmet Aerospace (HWM)
Metric	CAT	HWM
Volatility (1Y, Annualized)	41.33%	37.60%
Beta (5Y)	1.65	1.27
Max Drawdown (5Y)	-47.79%	-36.47%
Avg. Volume (3M)	2.82M	3.47M

Risk-Adjusted Performance

Risk-Return Positioning

CAT and HWM 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 Howmet Aerospace (HWM)
Metric	CAT	HWM
Sharpe Ratio (1Y)	0.06	0.02
Sortino Ratio (1Y)	0.08	0.03

Profitability

ROE (TTM)

Both companies show strong equity returns, but Caterpillar (CAT) at 56.14% is the standout with ROE above its industry range; Howmet Aerospace (HWM) at 37.65% also sits in the top quartile.

CAT

Capital Goods industry group

56.14%

CAT: 56.14%
Max: 40.55%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

HWM

Capital Goods industry group

37.65%

Max: 40.55%
HWM: 37.65%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

Caterpillar (CAT) vs. Howmet Aerospace (HWM): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Caterpillar (CAT) at 15.21% and Howmet Aerospace (HWM) at 21.10% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

CAT

Capital Goods industry group

15.21%

Max: 27.47%
CAT: 15.21%
Q3: 12.10%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

HWM

Capital Goods industry group

21.10%

Max: 27.47%
HWM: 21.10%
Q3: 12.10%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

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

Operating Margin (TTM)

Both Caterpillar (CAT) at 20.19% and Howmet Aerospace (HWM) at 28.78% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

CAT

Capital Goods industry group

20.19%

Max: 36.60%
CAT: 20.19%
Q3: 18.33%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

HWM

Capital Goods industry group

28.78%

Max: 36.60%
HWM: 28.78%
Q3: 18.33%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

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

Profitability Metrics

Profitability metrics for Caterpillar (CAT) and Howmet Aerospace (HWM)
Metric	CAT	HWM
ROE (TTM)	56.14%	37.65%
ROA (TTM)	9.09%	13.97%
Net Margin (TTM)	15.21%	21.10%
Operating Margin (TTM)	20.19%	28.78%
Gross Margin (TTM)	29.54%	36.63%

Growth

Revenue Growth

Both Caterpillar (CAT) at 4.29% and Howmet Aerospace (HWM) at 11.06% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Caterpillar (CAT) vs. Howmet Aerospace (HWM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Howmet Aerospace (HWM) at 32.03% sits in the top EPS growth quartile, while Caterpillar (CAT) at -14.69% is closer to the peer norm — faster per-share earnings growth for HWM.

Caterpillar (CAT) vs. Howmet Aerospace (HWM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Caterpillar (CAT) and Howmet Aerospace (HWM)
Metric	CAT	HWM
Revenue Growth (YoY)	4.29%	11.06%
Revenue Growth (3Y CAGR)	4.38%	13.37%
EPS Growth (YoY)	-14.69%	32.03%
EPS Growth (3Y CAGR)	14.17%	49.51%

Financial Strength

Current Ratio (MRQ)

Howmet Aerospace (HWM) at 1.86 keeps current ratio within its industry’s typical mid-range, while Caterpillar (CAT) at 1.42 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for CAT.

CAT

Capital Goods industry group

1.42

Max: 5.22
Q3: 2.95
Median: 2.08
Q1: 1.43
CAT: 1.42
Min: 0.36

HWM

Capital Goods industry group

1.86

Max: 5.22
Q3: 2.95
Median: 2.08
HWM: 1.86
Q1: 1.43
Min: 0.36

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

Debt / Equity (MRQ)

Howmet Aerospace (HWM) at 0.80 carries an industry-typical debt-to-equity mix, while Caterpillar (CAT) at 2.10 uses more debt funding than most peers.

CAT

Capital Goods industry group

2.10

Max: 2.33
CAT: 2.10
Q3: 1.12
Median: 0.60
Q1: 0.29
Min: 0.00

HWM

Capital Goods industry group

0.80

Max: 2.33
Q3: 1.12
HWM: 0.80
Median: 0.60
Q1: 0.29
Min: 0.00

Caterpillar (CAT) vs. Howmet Aerospace (HWM): 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 Howmet Aerospace (HWM)
Metric	CAT	HWM
Current Ratio (MRQ)	1.42	1.86
Debt / Equity (MRQ)	2.10	0.80
Net Debt / EBITDA	2.25	1.35

Dividends

Dividend Yield (TTM)

Both Caterpillar (CAT) at 1.13% and Howmet Aerospace (HWM) at 0.25% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

CAT

Capital Goods industry group

1.13%

Max: 2.66%
Q3: 1.14%
CAT: 1.13%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

HWM

Capital Goods industry group

0.25%

Max: 2.66%
Q3: 1.14%
HWM: 0.25%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

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

Dividend Payout Ratio (TTM)

Both Caterpillar (CAT) at 24.18% and Howmet Aerospace (HWM) at 9.80% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.

CAT

Capital Goods industry group

24.18%

Max: 67.39%
Q3: 28.02%
CAT: 24.18%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

HWM

Capital Goods industry group

9.80%

Max: 67.39%
Q3: 28.02%
HWM: 9.80%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

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

Dividend Metrics

Dividend metrics for Caterpillar (CAT) and Howmet Aerospace (HWM)
Metric	CAT	HWM
Dividend Yield (TTM)	1.13%	0.25%
Dividend Payout Ratio (TTM)	24.18%	9.80%

Valuation

P/E Ratio (TTM)

Caterpillar (CAT) at 21.92 is near its industry’s usual P/E ratio, while Howmet Aerospace (HWM) at 40.35 sits in the richer quartile — HWM needs stronger growth or earnings quality to justify the premium.

CAT

Capital Goods industry group

21.92

Max: 59.38
Q3: 35.92
Median: 25.41
CAT: 21.92
Q1: 19.47
Min: 3.03

HWM

Capital Goods industry group

40.35

Max: 59.38
HWM: 40.35
Q3: 35.92
Median: 25.41
Q1: 19.47
Min: 3.03

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

P/S Ratio (TTM)

Caterpillar (CAT) at 3.29 prices around its industry’s typical P/S ratio, while Howmet Aerospace (HWM) at 8.41 clears its benchmark range — HWM looks notably rich on sales.

CAT

Capital Goods industry group

3.29

Max: 7.54
Q3: 3.76
CAT: 3.29
Median: 2.15
Q1: 1.03
Min: 0.03

HWM

Capital Goods industry group

8.41

HWM: 8.41
Max: 7.54
Q3: 3.76
Median: 2.15
Q1: 1.03
Min: 0.03

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

P/B Ratio (MRQ)

Measured against book value, both Caterpillar (CAT) at 11.90 and Howmet Aerospace (HWM) at 14.20 look expensive — each P/B ratio sits above its industry’s benchmark range.

CAT

Capital Goods industry group

11.90

CAT: 11.90
Max: 9.66
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08

HWM

Capital Goods industry group

14.20

HWM: 14.20
Max: 9.66
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08

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

Valuation Metrics

Valuation metrics for Caterpillar (CAT) and Howmet Aerospace (HWM)
Metric	CAT	HWM
P/E Ratio (TTM)	21.92	40.35
P/S Ratio (TTM)	3.29	8.41
P/B Ratio (MRQ)	11.90	14.20
Free Cash Flow Yield (TTM)	1.55%	1.58%