CAT vs. NSC: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at CAT and NSC, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | CAT | NSC |
|---|---|---|
| Company Name | Caterpillar Inc. | Norfolk Southern Corporation |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Machinery | Ground Transportation |
| Market Capitalization | 235.23 billion USD | 66.56 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | January 2, 1962 | June 2, 1982 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of CAT and NSC 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.
Historical Performance at a Glance
| Symbol | CAT | NSC |
|---|---|---|
| 5-Day Price Return | 2.35% | -0.56% |
| 13-Week Price Return | 24.85% | 14.07% |
| 26-Week Price Return | 64.22% | 34.38% |
| 52-Week Price Return | 26.08% | 21.69% |
| Month-to-Date Return | 5.23% | -1.26% |
| Year-to-Date Return | 38.42% | 26.38% |
| 10-Day Avg. Volume | 2.79M | 1.43M |
| 3-Month Avg. Volume | 2.78M | 1.98M |
| 3-Month Volatility | 23.06% | 18.08% |
| Beta | 1.55 | 1.34 |
Profitability
Return on Equity (TTM)
CAT
49.92%
Machinery Industry
- Max
- 33.68%
- Q3
- 20.05%
- Median
- 12.37%
- Q1
- 8.67%
- Min
- -7.69%
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.
NSC
23.35%
Ground Transportation Industry
- Max
- 23.35%
- Q3
- 13.74%
- Median
- 9.05%
- Q1
- 6.86%
- Min
- 1.73%
In the upper quartile for the Ground Transportation industry, NSC’s Return on Equity of 23.35% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
CAT
14.95%
Machinery Industry
- Max
- 19.72%
- Q3
- 11.07%
- Median
- 7.62%
- Q1
- 5.05%
- Min
- -1.52%
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.
NSC
27.51%
Ground Transportation Industry
- Max
- 32.19%
- Q3
- 17.08%
- Median
- 7.19%
- Q1
- 4.45%
- Min
- -5.54%
A Net Profit Margin of 27.51% places NSC in the upper quartile for the Ground Transportation industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
CAT
18.23%
Machinery Industry
- Max
- 26.63%
- Q3
- 15.99%
- Median
- 11.27%
- Q1
- 7.72%
- Min
- -0.51%
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.
NSC
41.45%
Ground Transportation Industry
- Max
- 42.90%
- Q3
- 23.80%
- Median
- 10.93%
- Q1
- 7.06%
- Min
- -12.94%
An Operating Profit Margin of 41.45% places NSC in the upper quartile for the Ground Transportation industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | CAT | NSC |
|---|---|---|
| Return on Equity (TTM) | 49.92% | 23.35% |
| Return on Assets (TTM) | 10.81% | 7.66% |
| Net Profit Margin (TTM) | 14.95% | 27.51% |
| Operating Profit Margin (TTM) | 18.23% | 41.45% |
| Gross Profit Margin (TTM) | 36.53% | 51.67% |
Financial Strength
Current Ratio (MRQ)
CAT
1.34
Machinery Industry
- Max
- 3.13
- Q3
- 2.12
- Median
- 1.72
- Q1
- 1.34
- Min
- 0.77
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.
NSC
0.79
Ground Transportation Industry
- Max
- 2.00
- Q3
- 1.31
- Median
- 0.98
- Q1
- 0.74
- Min
- 0.35
NSC’s Current Ratio of 0.79 aligns with the median group of the Ground Transportation industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
CAT
2.18
Machinery Industry
- Max
- 1.56
- Q3
- 0.79
- Median
- 0.44
- Q1
- 0.27
- 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.
NSC
1.17
Ground Transportation Industry
- Max
- 2.51
- Q3
- 1.48
- Median
- 1.02
- Q1
- 0.48
- Min
- 0.00
NSC’s Debt-to-Equity Ratio of 1.17 is typical for the Ground Transportation industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio (TTM)
CAT
12.53
Machinery Industry
- Max
- 81.58
- Q3
- 37.68
- Median
- 13.76
- 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.
NSC
5.21
Ground Transportation Industry
- Max
- 59.80
- Q3
- 25.78
- Median
- 8.23
- Q1
- 2.52
- Min
- -24.57
NSC’s Interest Coverage Ratio of 5.21 is positioned comfortably within the norm for the Ground Transportation industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | CAT | NSC |
|---|---|---|
| Current Ratio (MRQ) | 1.34 | 0.79 |
| Quick Ratio (MRQ) | 0.72 | 0.71 |
| Debt-to-Equity Ratio (MRQ) | 2.18 | 1.17 |
| Interest Coverage Ratio (TTM) | 12.53 | 5.21 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
CAT
1.14%
Machinery Industry
- Max
- 4.55%
- Q3
- 2.66%
- Median
- 1.90%
- Q1
- 1.23%
- Min
- 0.00%
CAT’s Dividend Yield of 1.14% is in the lower quartile for the Machinery industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
NSC
1.68%
Ground Transportation Industry
- Max
- 5.29%
- Q3
- 2.57%
- Median
- 1.59%
- Q1
- 0.71%
- Min
- 0.00%
NSC’s Dividend Yield of 1.68% is consistent with its peers in the Ground Transportation industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
CAT
28.60%
Machinery Industry
- Max
- 198.34%
- Q3
- 101.42%
- Median
- 62.79%
- Q1
- 29.85%
- 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.
NSC
36.42%
Ground Transportation Industry
- Max
- 149.12%
- Q3
- 75.08%
- Median
- 41.35%
- Q1
- 16.42%
- Min
- 0.00%
NSC’s Dividend Payout Ratio of 36.42% is within the typical range for the Ground Transportation industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | CAT | NSC |
|---|---|---|
| Dividend Yield (TTM) | 1.14% | 1.68% |
| Dividend Payout Ratio (TTM) | 28.60% | 36.42% |
Valuation
Price-to-Earnings Ratio (TTM)
CAT
25.09
Machinery Industry
- Max
- 47.95
- Q3
- 30.11
- Median
- 22.35
- Q1
- 16.56
- Min
- 6.48
CAT’s P/E Ratio of 25.09 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.
NSC
21.64
Ground Transportation Industry
- Max
- 39.04
- Q3
- 24.45
- Median
- 17.51
- Q1
- 12.92
- Min
- 5.87
NSC’s P/E Ratio of 21.64 is within the middle range for the Ground Transportation industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
CAT
3.75
Machinery Industry
- Max
- 4.97
- Q3
- 2.76
- Median
- 1.65
- Q1
- 1.04
- Min
- 0.04
CAT’s P/S Ratio of 3.75 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.
NSC
5.95
Ground Transportation Industry
- Max
- 2.82
- Q3
- 2.22
- Median
- 1.41
- Q1
- 0.88
- Min
- 0.24
With a P/S Ratio of 5.95, NSC trades at a valuation that eclipses even the highest in the Ground Transportation industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio (MRQ)
CAT
9.78
Machinery Industry
- Max
- 7.29
- Q3
- 4.06
- Median
- 2.67
- Q1
- 1.54
- Min
- 0.52
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.
NSC
3.90
Ground Transportation Industry
- Max
- 5.27
- Q3
- 3.03
- Median
- 1.40
- Q1
- 1.18
- Min
- 0.67
NSC’s P/B Ratio of 3.90 is in the upper tier for the Ground Transportation industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | CAT | NSC |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 25.09 | 21.64 |
| Price-to-Sales Ratio (TTM) | 3.75 | 5.95 |
| Price-to-Book Ratio (MRQ) | 9.78 | 3.90 |
| Price-to-Free Cash Flow Ratio (TTM) | 30.60 | 35.81 |