CAT vs. LMT: Caterpillar vs. Lockheed Martin Stock Comparison

September 14, 2026

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

Company profile comparison for Caterpillar (CAT) and Lockheed Martin (LMT)
Profile Item	CAT	LMT
Name	Caterpillar Inc.	Lockheed Martin Corporation
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	376.28 billion USD	120.98 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1962	January 2, 1962
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

CAT

LMT

GSPC

Caterpillar (CAT) vs. Lockheed Martin (LMT), 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 Lockheed Martin (LMT). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Caterpillar (CAT) and Lockheed Martin (LMT)
Metric	CAT	LMT
Total Return (1Y)	91.46%	14.23%
Total Return (3Y, Annualized)	44.66%	10.52%
Total Return (5Y, Annualized)	34.19%	11.62%

Risk Profile

Drawdown History

CAT

LMT

GSPC

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

Risk Metrics

Caterpillar (CAT) has an aggressive beta of 1.59, indicating higher sensitivity to broad-market moves, while Lockheed Martin (LMT) is defensive at 0.08 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.

Risk profile metrics for Caterpillar (CAT) and Lockheed Martin (LMT)
Metric	CAT	LMT
Volatility (1Y, Annualized)	39.72%	28.23%
Beta (5Y)	1.59	0.08
Max Drawdown (5Y)	-34.05%	-31.79%
Avg. Volume (3M)	3.10M	1.21M

Risk-Adjusted Performance

Risk-Return Positioning

CAT and LMT 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 Lockheed Martin (LMT)
Metric	CAT	LMT
Sharpe Ratio (1Y)	2.20	0.36
Sortino Ratio (1Y)	3.54	0.56

Profitability

ROE (TTM)

Both Caterpillar (CAT) at 56.97% and Lockheed Martin (LMT) at 89.17% turn shareholders’ equity into profit at rates above their industry benchmark ranges for ROE. That is a strong capital-efficiency signal, though leverage and the equity base still matter.

CAT

Capital Goods industry group

56.97%

CAT: 56.97%
Max: 40.35%
Q3: 18.69%
Median: 11.55%
Q1: 2.89%
Min: -19.86%

LMT

Capital Goods industry group

89.17%

LMT: 89.17%
Max: 40.35%
Q3: 18.69%
Median: 11.55%
Q1: 2.89%
Min: -19.86%

Caterpillar (CAT) vs. Lockheed Martin (LMT): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Caterpillar (CAT) at 14.51% retains a top-quartile share of revenue as profit, ahead of Lockheed Martin (LMT) at 8.16%, which keeps about the industry-typical share.

CAT

Capital Goods industry group

14.51%

Max: 27.47%
CAT: 14.51%
Q3: 11.71%
Median: 5.78%
Q1: 0.77%
Min: -14.15%

LMT

Capital Goods industry group

8.16%

Max: 27.47%
Q3: 11.71%
LMT: 8.16%
Median: 5.78%
Q1: 0.77%
Min: -14.15%

Caterpillar (CAT) vs. Lockheed Martin (LMT): 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 Lockheed Martin (LMT) at 11.96%, which runs around its industry’s norm.

CAT

Capital Goods industry group

22.18%

Max: 35.46%
CAT: 22.18%
Q3: 17.39%
Median: 10.58%
Q1: 4.59%
Min: -12.63%

LMT

Capital Goods industry group

11.96%

Max: 35.46%
Q3: 17.39%
LMT: 11.96%
Median: 10.58%
Q1: 4.59%
Min: -12.63%

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

Profitability Metrics

Profitability metrics for Caterpillar (CAT) and Lockheed Martin (LMT)
Metric	CAT	LMT
ROE (TTM)	56.97%	89.17%
ROA (TTM)	9.03%	8.64%
Net Margin (TTM)	14.51%	8.16%
Operating Margin (TTM)	22.18%	11.96%
Gross Margin (TTM)	29.71%	11.80%

Growth

Revenue Growth

Both Caterpillar (CAT) at 4.29% and Lockheed Martin (LMT) at 5.64% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Caterpillar (CAT) vs. Lockheed Martin (LMT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Caterpillar (CAT) at -14.69% and Lockheed Martin (LMT) at -3.68% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Caterpillar (CAT) vs. Lockheed Martin (LMT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Caterpillar (CAT) and Lockheed Martin (LMT)
Metric	CAT	LMT
Revenue Growth (YoY)	4.29%	5.64%
Revenue Growth (3Y CAGR)	4.38%	4.38%
EPS Growth (YoY)	-14.69%	-3.68%
EPS Growth (3Y CAGR)	14.17%	-0.26%

Financial Strength

Current Ratio (MRQ)

Both Caterpillar (CAT) at 1.37 and Lockheed Martin (LMT) at 1.19 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: 2.09
Q1: 1.45
CAT: 1.37
Min: 0.76

LMT

Capital Goods industry group

1.19

Max: 5.28
Q3: 2.99
Median: 2.09
Q1: 1.45
LMT: 1.19
Min: 0.76

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

Debt / Equity (MRQ)

Debt sits unusually high against shareholders’ equity for both Caterpillar (CAT) at 2.33 and Lockheed Martin (LMT) at 2.34 — each debt-to-equity ratio is above its industry benchmark range.

CAT

Capital Goods industry group

2.33

CAT: 2.33
Max: 2.15
Q3: 1.09
Median: 0.57
Q1: 0.27
Min: 0.00

LMT

Capital Goods industry group

2.34

LMT: 2.34
Max: 2.15
Q3: 1.09
Median: 0.57
Q1: 0.27
Min: 0.00

Caterpillar (CAT) vs. Lockheed Martin (LMT): 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 Lockheed Martin (LMT)
Metric	CAT	LMT
Current Ratio (MRQ)	1.37	1.19
Debt / Equity (MRQ)	2.33	2.34
Net Debt / EBITDA	2.41	1.73

Dividends

Dividend Yield (TTM)

Lockheed Martin (LMT) at 2.57% delivers top-quartile income for its industry, while Caterpillar (CAT) at 0.77% pays a more typical yield — both are credible income propositions, LMT the richer one.

CAT

Capital Goods industry group

0.77%

Max: 2.75%
Q3: 1.11%
CAT: 0.77%
Median: 0.18%
Q1: 0.00%
Min: 0.00%

LMT

Capital Goods industry group

2.57%

Max: 2.75%
LMT: 2.57%
Q3: 1.11%
Median: 0.18%
Q1: 0.00%
Min: 0.00%

Caterpillar (CAT) vs. Lockheed Martin (LMT): 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 Lockheed Martin (LMT) at 50.33% distributes more than its industry norm — less retained, thinner cover.

CAT

Capital Goods industry group

26.01%

Max: 72.00%
Q3: 28.86%
CAT: 26.01%
Median: 6.13%
Q1: 0.00%
Min: 0.00%

LMT

Capital Goods industry group

50.33%

Max: 72.00%
LMT: 50.33%
Q3: 28.86%
Median: 6.13%
Q1: 0.00%
Min: 0.00%

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

Dividend Metrics

Dividend metrics for Caterpillar (CAT) and Lockheed Martin (LMT)
Metric	CAT	LMT
Dividend Yield (TTM)	0.77%	2.57%
Dividend Payout Ratio (TTM)	26.01%	50.33%

Valuation

P/E Ratio (TTM)

Lockheed Martin (LMT) at 19.34 sits in the cheaper P/E ratio quartile, while Caterpillar (CAT) at 35.21 is closer to its industry’s usual earnings multiple — a discount for LMT, though growth and earnings durability still matter.

CAT

Capital Goods industry group

35.21

Max: 66.10
Q3: 40.43
CAT: 35.21
Median: 29.30
Q1: 21.19
Min: 1.09

LMT

Capital Goods industry group

19.34

Max: 66.10
Q3: 40.43
Median: 29.30
Q1: 21.19
LMT: 19.34
Min: 1.09

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

P/S Ratio (TTM)

Lockheed Martin (LMT) at 1.57 is priced about in line with its industry on P/S ratio, while Caterpillar (CAT) at 5.04 sits in the pricier quartile — CAT costs more per dollar of sales.

CAT

Capital Goods industry group

5.04

Max: 9.06
CAT: 5.04
Q3: 4.40
Median: 2.41
Q1: 1.19
Min: 0.05

LMT

Capital Goods industry group

1.57

Max: 9.06
Q3: 4.40
Median: 2.41
LMT: 1.57
Q1: 1.19
Min: 0.05

Caterpillar (CAT) vs. Lockheed Martin (LMT): 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 19.40 and Lockheed Martin (LMT) at 13.75 look expensive — each P/B ratio sits above its industry’s benchmark range.

CAT

Capital Goods industry group

19.40

CAT: 19.40
Max: 11.10
Q3: 5.63
Median: 3.31
Q1: 1.94
Min: -3.52

LMT

Capital Goods industry group

13.75

LMT: 13.75
Max: 11.10
Q3: 5.63
Median: 3.31
Q1: 1.94
Min: -3.52

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

Valuation Metrics

Valuation metrics for Caterpillar (CAT) and Lockheed Martin (LMT)
Metric	CAT	LMT
P/E Ratio (TTM)	35.21	19.34
P/S Ratio (TTM)	5.04	1.57
P/B Ratio (MRQ)	19.40	13.75
Free Cash Flow Yield (TTM)	1.34%	4.60%