CAT vs. LHX: Caterpillar vs. L3Harris Stock Comparison

November 11, 2026

How do Caterpillar (CAT) and L3Harris (LHX) 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 L3Harris (LHX) both fall under the Capital Goods industry group, but CAT is classified in Machinery while LHX is classified in Aerospace & Defense.

Company profile comparison for Caterpillar (CAT) and L3Harris (LHX)
Profile Item	CAT	LHX
Name	Caterpillar Inc.	L3Harris Technologies, 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	48.39 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1962	December 31, 1981
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

CAT

LHX

GSPC

Caterpillar (CAT) vs. L3Harris (LHX), 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 L3Harris (LHX). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Caterpillar (CAT) and L3Harris (LHX). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Caterpillar (CAT) and L3Harris (LHX)
Metric	CAT	LHX
Total Return (1Y)	6.75%	-5.21%
Total Return (3Y, Annualized)	38.34%	16.68%
Total Return (5Y, Annualized)	25.28%	5.91%

Risk Profile

Drawdown History

CAT

LHX

GSPC

Caterpillar (CAT) vs. L3Harris (LHX), 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 L3Harris (LHX). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Caterpillar (CAT) has an aggressive beta of 1.65, indicating higher sensitivity to broad-market moves, while L3Harris (LHX) is defensive at 0.46 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.

Risk profile metrics for Caterpillar (CAT) and L3Harris (LHX)
Metric	CAT	LHX
Volatility (1Y, Annualized)	41.33%	29.75%
Beta (5Y)	1.65	0.46
Max Drawdown (5Y)	-47.79%	-38.16%
Avg. Volume (3M)	2.82M	1.70M

Risk-Adjusted Performance

Risk-Return Positioning

CAT and LHX 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 L3Harris (LHX)
Metric	CAT	LHX
Sharpe Ratio (1Y)	0.06	-0.32
Sortino Ratio (1Y)	0.08	-0.45

Profitability

ROE (TTM)

Caterpillar (CAT) at 56.14% clears its industry range for ROE, a sharper capital-efficiency signal than L3Harris (LHX) at 10.03%, which is closer to a typical peer reading.

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%

LHX

Capital Goods industry group

10.03%

Max: 40.55%
Q3: 19.29%
Median: 12.12%
LHX: 10.03%
Q1: 4.08%
Min: -17.12%

Caterpillar (CAT) vs. L3Harris (LHX): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Caterpillar (CAT) at 15.21% retains a top-quartile share of revenue as profit, ahead of L3Harris (LHX) at 8.76%, which keeps about the industry-typical share.

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%

LHX

Capital Goods industry group

8.76%

Max: 27.47%
Q3: 12.10%
LHX: 8.76%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Caterpillar (CAT) vs. L3Harris (LHX): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Caterpillar (CAT) at 20.19% operates in the top operating margin quartile, ahead of L3Harris (LHX) at 14.34%, which runs around its industry’s norm.

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%

LHX

Capital Goods industry group

14.34%

Max: 36.60%
Q3: 18.33%
LHX: 14.34%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

Caterpillar (CAT) vs. L3Harris (LHX): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Caterpillar (CAT) and L3Harris (LHX)
Metric	CAT	LHX
ROE (TTM)	56.14%	10.03%
ROA (TTM)	9.09%	4.56%
Net Margin (TTM)	15.21%	8.76%
Operating Margin (TTM)	20.19%	14.34%
Gross Margin (TTM)	29.54%	25.55%

Growth

Revenue Growth

Both Caterpillar (CAT) at 4.29% and L3Harris (LHX) at 2.53% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Caterpillar (CAT) vs. L3Harris (LHX): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Caterpillar (CAT) at -14.69% and L3Harris (LHX) at 8.39% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Caterpillar (CAT) vs. L3Harris (LHX): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Caterpillar (CAT) and L3Harris (LHX)
Metric	CAT	LHX
Revenue Growth (YoY)	4.29%	2.53%
Revenue Growth (3Y CAGR)	4.38%	8.62%
EPS Growth (YoY)	-14.69%	8.39%
EPS Growth (3Y CAGR)	14.17%	15.82%

Financial Strength

Current Ratio (MRQ)

Both Caterpillar (CAT) at 1.42 and L3Harris (LHX) at 1.20 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

1.42

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

LHX

Capital Goods industry group

1.20

Max: 5.22
Q3: 2.95
Median: 2.08
Q1: 1.43
LHX: 1.20
Min: 0.36

Caterpillar (CAT) vs. L3Harris (LHX): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

L3Harris (LHX) at 0.52 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

LHX

Capital Goods industry group

0.52

Max: 2.33
Q3: 1.12
Median: 0.60
LHX: 0.52
Q1: 0.29
Min: 0.00

Caterpillar (CAT) vs. L3Harris (LHX): 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 L3Harris (LHX)
Metric	CAT	LHX
Current Ratio (MRQ)	1.42	1.20
Debt / Equity (MRQ)	2.10	0.52
Net Debt / EBITDA	2.25	1.88

Dividends

Dividend Yield (TTM)

L3Harris (LHX) at 1.92% delivers top-quartile income for its industry, while Caterpillar (CAT) at 1.13% pays a more typical yield — both are credible income propositions, LHX the richer one.

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%

LHX

Capital Goods industry group

1.92%

Max: 2.66%
LHX: 1.92%
Q3: 1.14%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

Caterpillar (CAT) vs. L3Harris (LHX): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Caterpillar (CAT) at 24.18% pays out a band-typical share of earnings, while L3Harris (LHX) at 46.09% distributes more than its industry norm — less retained, thinner cover.

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%

LHX

Capital Goods industry group

46.09%

Max: 67.39%
LHX: 46.09%
Q3: 28.02%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

Caterpillar (CAT) vs. L3Harris (LHX): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Caterpillar (CAT) and L3Harris (LHX)
Metric	CAT	LHX
Dividend Yield (TTM)	1.13%	1.92%
Dividend Payout Ratio (TTM)	24.18%	46.09%

Valuation

P/E Ratio (TTM)

Both Caterpillar (CAT) at 21.92 and L3Harris (LHX) at 24.20 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

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

LHX

Capital Goods industry group

24.20

Max: 59.38
Q3: 35.92
Median: 25.41
LHX: 24.20
Q1: 19.47
Min: 3.03

Caterpillar (CAT) vs. L3Harris (LHX): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Caterpillar (CAT) at 3.29 and L3Harris (LHX) at 2.07 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

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

LHX

Capital Goods industry group

2.07

Max: 7.54
Q3: 3.76
Median: 2.15
LHX: 2.07
Q1: 1.03
Min: 0.03

Caterpillar (CAT) vs. L3Harris (LHX): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

L3Harris (LHX) at 2.39 sits near its industry’s typical P/B ratio, while Caterpillar (CAT) at 11.90 prices above its benchmark range — CAT looks rich relative to book.

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

LHX

Capital Goods industry group

2.39

Max: 9.66
Q3: 5.00
Median: 3.12
LHX: 2.39
Q1: 1.81
Min: -1.08

Caterpillar (CAT) vs. L3Harris (LHX): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Caterpillar (CAT) and L3Harris (LHX)
Metric	CAT	LHX
P/E Ratio (TTM)	21.92	24.20
P/S Ratio (TTM)	3.29	2.07
P/B Ratio (MRQ)	11.90	2.39
Free Cash Flow Yield (TTM)	1.55%	7.09%