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CAT vs. RKLB: Caterpillar vs. Rocket Lab Stock Comparison

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

Caterpillar (CAT) has more than two decades of public-market history since January 2, 1962, whereas Rocket Lab (RKLB) listed on November 24, 2020 and has a much shorter record to draw on.

Company profile comparison for Caterpillar (CAT) and Rocket Lab (RKLB)
Profile ItemCATRKLB
NameCaterpillar Inc.Rocket Lab Corporation
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryMachineryAerospace & Defense
GICS Sub-IndustryConstruction Machinery & Heavy Transportation EquipmentAerospace & Defense
Market Capitalization255.63 billion USD33.93 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateJanuary 2, 1962November 24, 2020
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CAT
RKLB
GSPC
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Caterpillar (CAT) vs. Rocket Lab (RKLB), 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 Rocket Lab (RKLB). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Caterpillar (CAT) and Rocket Lab (RKLB)
MetricCATRKLB
Total Return (1Y)6.75%12.96%
Total Return (3Y, Annualized)38.34%138.86%
Total Return (5Y, Annualized)25.28%31.49%

Risk Profile

Drawdown History

CAT
RKLB
GSPC
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Caterpillar (CAT) vs. Rocket Lab (RKLB), 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 Rocket Lab (RKLB). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Caterpillar (CAT) and Rocket Lab (RKLB)
MetricCATRKLB
Volatility (1Y, Annualized)41.33%95.71%
Beta (5Y)1.653.14
Max Drawdown (5Y)-47.79%-78.32%
Avg. Volume (3M)2.82M19.51M

Risk-Adjusted Performance

Risk-Return Positioning

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CAT and RKLB 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 Rocket Lab (RKLB)
MetricCATRKLB
Sharpe Ratio (1Y)0.060.09
Sortino Ratio (1Y)0.080.14

Profitability

ROE (TTM)

Rocket Lab (RKLB) reports a negative ROE of -7.92%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile Caterpillar (CAT) reports 56.14%, ranking against industry peers normally.

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%

RKLB

Capital Goods industry group

-7.92%

Max
40.55%
Q3
19.29%
Median
12.12%
Q1
4.08%
RKLB
-7.92%
Min
-17.12%
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Caterpillar (CAT) vs. Rocket Lab (RKLB): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Rocket Lab (RKLB) reports a negative net margin of -21.51%, usually indicating a net loss over the period. Meanwhile Caterpillar (CAT) reports 15.21%, ranking against industry peers normally.

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%

RKLB

Capital Goods industry group

-21.51%

Max
27.47%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%
RKLB
-21.51%
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Caterpillar (CAT) vs. Rocket Lab (RKLB): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Rocket Lab (RKLB) reports a negative operating margin of -24.57%, usually indicating that operating costs exceeded revenue at the operating-income line. Meanwhile Caterpillar (CAT) reports 20.19%, ranking against industry peers normally.

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%

RKLB

Capital Goods industry group

-24.57%

Max
36.60%
Q3
18.33%
Median
11.12%
Q1
5.14%
Min
-12.63%
RKLB
-24.57%
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Caterpillar (CAT) vs. Rocket Lab (RKLB): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Caterpillar (CAT) and Rocket Lab (RKLB)
MetricCATRKLB
ROE (TTM)56.14%-7.92%
ROA (TTM)9.09%-4.62%
Net Margin (TTM)15.21%-21.51%
Operating Margin (TTM)20.19%-24.57%
Gross Margin (TTM)29.54%37.26%

Growth

Revenue Growth

Rocket Lab (RKLB) at 37.96% sits in the top revenue growth quartile, while Caterpillar (CAT) at 4.29% is closer to the peer norm — faster top-line expansion for RKLB.

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Caterpillar (CAT) vs. Rocket Lab (RKLB): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Caterpillar (CAT) reports EPS growth of -14.69%, ranked against its industry; Rocket Lab (RKLB) has no EPS growth figure this period.

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Caterpillar (CAT) vs. Rocket Lab (RKLB): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Caterpillar (CAT) and Rocket Lab (RKLB)
MetricCATRKLB
Revenue Growth (YoY)4.29%37.96%
Revenue Growth (3Y CAGR)4.38%41.82%
EPS Growth (YoY)-14.69%--
EPS Growth (3Y CAGR)14.17%--

Financial Strength

Current Ratio (MRQ)

Rocket Lab (RKLB) at 5.48 carries current ratio above its industry’s typical mid-range, while Caterpillar (CAT) at 1.42 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

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

RKLB

Capital Goods industry group

5.48

RKLB
5.48
Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
Min
0.36
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Caterpillar (CAT) vs. Rocket Lab (RKLB): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Rocket Lab (RKLB) at 0.04 keeps leverage in the lower quartile, while Caterpillar (CAT) at 2.10 sits in the higher-leverage quartile.

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

RKLB

Capital Goods industry group

0.04

Max
2.33
Q3
1.12
Median
0.60
Q1
0.29
RKLB
0.04
Min
0.00
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Caterpillar (CAT) vs. Rocket Lab (RKLB): 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 Rocket Lab (RKLB)
MetricCATRKLB
Current Ratio (MRQ)1.425.48
Debt / Equity (MRQ)2.100.04
Net Debt / EBITDA2.25--

Dividends

Dividend Yield (TTM)

Rocket Lab (RKLB) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Caterpillar (CAT) reports a yield of 1.13%, ranking against industry peers normally.

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%

RKLB

Capital Goods industry group

0.00%

Max
2.66%
Q3
1.14%
Median
0.24%
RKLB
0.00%
Q1
0.00%
Min
0.00%
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Caterpillar (CAT) vs. Rocket Lab (RKLB): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Rocket Lab (RKLB) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Caterpillar (CAT) reports a payout of 24.18%, ranking against industry peers normally.

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%

RKLB

Capital Goods industry group

0.00%

Max
67.39%
Q3
28.02%
Median
6.86%
RKLB
0.00%
Q1
0.00%
Min
0.00%
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Caterpillar (CAT) vs. Rocket Lab (RKLB): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Caterpillar (CAT) and Rocket Lab (RKLB)
MetricCATRKLB
Dividend Yield (TTM)1.13%0.00%
Dividend Payout Ratio (TTM)24.18%0.00%

Valuation

P/E Ratio (TTM)

An earnings multiple is available for just one side: Caterpillar (CAT) trades at 21.92 times trailing earnings, ranked against its peers, while Rocket Lab (RKLB) has no P/E ratio this period.

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

RKLB

Capital Goods industry group

--

Max
59.38
Q3
35.92
Median
25.41
Q1
19.47
Min
3.03
RKLB
--
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Caterpillar (CAT) vs. Rocket Lab (RKLB): RKLB does not report P/E ratio, so it has no value marker; CAT is benchmarked against the Capital Goods industry group.

P/S Ratio (TTM)

Caterpillar (CAT) at 3.29 prices around its industry’s typical P/S ratio, while Rocket Lab (RKLB) at 44.12 clears its benchmark range — RKLB 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

RKLB

Capital Goods industry group

44.12

RKLB
44.12
Max
7.54
Q3
3.76
Median
2.15
Q1
1.03
Min
0.03
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Caterpillar (CAT) vs. Rocket Lab (RKLB): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Rocket Lab (RKLB) at 9.09 sits in the upper P/B ratio quartile, and Caterpillar (CAT) at 11.90 prices even higher, above its industry 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

RKLB

Capital Goods industry group

9.09

Max
9.66
RKLB
9.09
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08
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Caterpillar (CAT) vs. Rocket Lab (RKLB): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Caterpillar (CAT) and Rocket Lab (RKLB)
MetricCATRKLB
P/E Ratio (TTM)21.92--
P/S Ratio (TTM)3.2944.12
P/B Ratio (MRQ)11.909.09
Free Cash Flow Yield (TTM)1.55%-0.74%