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CAT vs. RTX: A Head-to-Head Stock Comparison

Here's a clear look at CAT and RTX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolCATRTX
Company NameCaterpillar Inc.RTX Corporation
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryMachineryAerospace & Defense
GICS Sub-IndustryConstruction Machinery & Heavy Transportation EquipmentAerospace & Defense
Market Capitalization325.43 billion USD255.34 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962April 2, 1962
Security TypeCommon StockCommon Stock

CAT's market capitalization stands at 325.43 billion USD, while RTX's is 255.34 billion USD, indicating their market valuations are broadly comparable.

Historical Performance

This chart compares the performance of CAT and RTX 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.

CAT vs. RTX: Growth of a $10,000 investment over the past five years.

Historical Performance at a Glance

SymbolCATRTX
5-Day Price Return-0.90%-2.62%
13-Week Price Return19.40%2.13%
26-Week Price Return47.30%18.99%
52-Week Price Return104.95%42.18%
Month-to-Date Return-6.39%-6.37%
Year-to-Date Return21.39%3.44%
10-Day Avg. Volume2.43M4.89M
3-Month Avg. Volume2.74M5.69M
3-Month Volatility35.37%24.94%
Beta1.540.43

CAT's beta of 1.54 points to significantly higher volatility compared to RTX (beta: 0.43), suggesting CAT has greater potential for both gains and losses relative to market movements.

Profitability

Return on Equity (TTM)

CAT

45.15%

Machinery Industry

Max
34.97%
Q3
19.18%
Median
11.86%
Q1
7.91%
Min
-8.50%

CAT's Return on Equity of 45.15% 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.

RTX

10.62%

Aerospace & Defense Industry

Max
43.22%
Q3
22.91%
Median
14.92%
Q1
8.33%
Min
-6.41%

RTX's Return on Equity of 10.62% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

CAT vs. RTX: A comparison of their Return on Equity (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Net Profit Margin (TTM)

CAT

13.14%

Machinery Industry

Max
18.39%
Q3
10.64%
Median
7.58%
Q1
5.24%
Min
-0.82%

A Net Profit Margin of 13.14% places CAT in the upper quartile for the Machinery industry, signifying strong profitability and more effective cost management than most of its peers.

RTX

7.60%

Aerospace & Defense Industry

Max
15.84%
Q3
9.85%
Median
7.02%
Q1
4.53%
Min
-3.23%

RTX's Net Profit Margin of 7.60% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.

CAT vs. RTX: A comparison of their Net Profit Margin (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Operating Profit Margin (TTM)

CAT

16.50%

Machinery Industry

Max
26.40%
Q3
15.62%
Median
11.25%
Q1
8.11%
Min
-0.02%

An Operating Profit Margin of 16.50% 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.

RTX

10.50%

Aerospace & Defense Industry

Max
22.71%
Q3
13.36%
Median
9.57%
Q1
6.49%
Min
-3.63%

RTX's Operating Profit Margin of 10.50% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.

CAT vs. RTX: A comparison of their Operating Profit Margin (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Profitability at a Glance

SymbolCATRTX
Return on Equity (TTM)45.15%10.62%
Return on Assets (TTM)9.67%4.01%
Net Profit Margin (TTM)13.14%7.60%
Operating Profit Margin (TTM)16.50%10.50%
Gross Profit Margin (TTM)33.86%20.08%

Financial Strength

Current Ratio (MRQ)

CAT

1.44

Machinery Industry

Max
3.37
Q3
2.17
Median
1.74
Q1
1.33
Min
0.71

CAT's Current Ratio of 1.44 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.

RTX

1.03

Aerospace & Defense Industry

Max
3.10
Q3
2.22
Median
1.22
Q1
1.10
Min
0.47

RTX's Current Ratio of 1.03 falls into the lower quartile for the Aerospace & Defense industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

CAT vs. RTX: A comparison of their Current Ratio (MRQ) against their respective Machinery and Aerospace & Defense industry benchmarks.

Debt-to-Equity Ratio (MRQ)

CAT

2.03

Machinery Industry

Max
1.37
Q3
0.69
Median
0.43
Q1
0.23
Min
0.00

With a Debt-to-Equity Ratio of 2.03, 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.

RTX

0.58

Aerospace & Defense Industry

Max
1.89
Q3
0.98
Median
0.58
Q1
0.36
Min
0.03

RTX's Debt-to-Equity Ratio of 0.58 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

CAT vs. RTX: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Machinery and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio (TTM)

CAT

7.20

Machinery Industry

Max
87.64
Q3
40.28
Median
13.43
Q1
6.22
Min
-0.40

CAT's Interest Coverage Ratio of 7.20 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.

RTX

5.99

Aerospace & Defense Industry

Max
43.00
Q3
22.16
Median
8.02
Q1
3.54
Min
-5.44

RTX's Interest Coverage Ratio of 5.99 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

CAT vs. RTX: A comparison of their Interest Coverage Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

SymbolCATRTX
Current Ratio (MRQ)1.441.03
Quick Ratio (MRQ)0.860.80
Debt-to-Equity Ratio (MRQ)2.030.58
Interest Coverage Ratio (TTM)7.205.99

Growth

Revenue Growth

CAT vs. RTX: A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

SymbolCATRTX
Revenue Growth (MRQ vs Prior YoY)18.00%12.09%
Revenue Growth (TTM vs Prior YoY)4.29%9.74%
3-Year Revenue CAGR4.38%9.72%
5-Year Revenue CAGR10.12%9.38%

EPS Growth

CAT vs. RTX: A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

SymbolCATRTX
EPS Growth (MRQ vs Prior YoY)-11.46%8.43%
EPS Growth (TTM vs Prior YoY)-14.70%39.69%
3-Year EPS CAGR14.16%12.37%
5-Year EPS CAGR28.05%--

Dividend

Dividend Yield (TTM)

CAT

0.85%

Machinery Industry

Max
5.14%
Q3
2.69%
Median
1.78%
Q1
1.04%
Min
0.00%

CAT's Dividend Yield of 0.85% 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.

RTX

1.40%

Aerospace & Defense Industry

Max
2.21%
Q3
1.41%
Median
0.64%
Q1
0.10%
Min
0.00%

RTX's Dividend Yield of 1.40% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.

CAT vs. RTX: A comparison of their Dividend Yield (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Dividend Payout Ratio (TTM)

CAT

30.94%

Machinery Industry

Max
194.44%
Q3
102.08%
Median
56.16%
Q1
28.80%
Min
0.00%

CAT's Dividend Payout Ratio of 30.94% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

RTX

53.09%

Aerospace & Defense Industry

Max
110.40%
Q3
50.63%
Median
20.44%
Q1
0.80%
Min
0.00%

RTX's Dividend Payout Ratio of 53.09% is in the upper quartile for the Aerospace & Defense industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

CAT vs. RTX: A comparison of their Dividend Payout Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Dividend at a Glance

SymbolCATRTX
Dividend Yield (TTM)0.85%1.40%
Dividend Payout Ratio (TTM)30.94%53.09%

Valuation

Price-to-Earnings Ratio (TTM)

CAT

36.42

Machinery Industry

Max
43.99
Q3
30.15
Median
25.62
Q1
19.20
Min
5.87

A P/E Ratio of 36.42 places CAT in the upper quartile for the Machinery industry. This high valuation relative to peers suggests the market holds elevated expectations for the company's future growth.

RTX

37.83

Aerospace & Defense Industry

Max
91.95
Q3
51.00
Median
31.74
Q1
21.93
Min
12.34

RTX's P/E Ratio of 37.83 is within the middle range for the Aerospace & Defense industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

CAT vs. RTX: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio (TTM)

CAT

4.79

Machinery Industry

Max
5.63
Q3
3.00
Median
1.89
Q1
1.10
Min
0.33

CAT's P/S Ratio of 4.79 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.

RTX

2.87

Aerospace & Defense Industry

Max
9.98
Q3
5.37
Median
2.68
Q1
1.77
Min
0.27

RTX's P/S Ratio of 2.87 aligns with the market consensus for the Aerospace & Defense industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

CAT vs. RTX: A comparison of their Price-to-Sales Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio (MRQ)

CAT

12.58

Machinery Industry

Max
8.64
Q3
4.43
Median
2.79
Q1
1.52
Min
0.58

At 12.58, 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.

RTX

3.77

Aerospace & Defense Industry

Max
16.65
Q3
10.07
Median
5.92
Q1
3.01
Min
0.91

RTX's P/B Ratio of 3.77 is within the conventional range for the Aerospace & Defense industry. This shows a balanced market view, where the stock's price is neither at a significant premium nor a discount to the book value of its peers.

CAT vs. RTX: A comparison of their Price-to-Book Ratio (MRQ) against their respective Machinery and Aerospace & Defense industry benchmarks.

Valuation at a Glance

SymbolCATRTX
Price-to-Earnings Ratio (TTM)36.4237.83
Price-to-Sales Ratio (TTM)4.792.87
Price-to-Book Ratio (MRQ)12.583.77
Price-to-Free Cash Flow Ratio (TTM)43.4133.32