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

Updated on August 23, 2025

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

Company Profile

Symbol	CAT	SARO
Company Name	Caterpillar Inc.	StandardAero, Inc.
Country	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry	Machinery	Aerospace & Defense
Market Capitalization	197.04 billion USD	8.91 billion USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1962	October 2, 2024
Security Type	Common Stock	Common Stock

Historical Performance

This chart compares the performance of CAT and SARO 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. SARO: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	CAT	SARO
5-Day Price Return	0.74%	-5.93%
13-Week Price Return	19.29%	-11.55%
26-Week Price Return	18.91%	-4.75%
52-Week Price Return	22.03%	--
Month-to-Date Return	-3.98%	-7.22%
Year-to-Date Return	15.94%	6.99%
10-Day Avg. Volume	3.54M	1.96M
3-Month Avg. Volume	2.76M	2.31M
3-Month Volatility	19.85%	24.14%
Beta	1.46	1.24

Profitability

Return on Equity (TTM)

CAT

49.92%

Machinery Industry

Max: 34.68%
Q3: 19.06%
Median: 13.13%
Q1: 8.53%
Min: -4.87%

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.

SARO

6.27%

Aerospace & Defense Industry

Max: 43.89%
Q3: 22.42%
Median: 12.50%
Q1: 5.21%
Min: -6.24%

SARO’s Return on Equity of 6.27% 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. SARO: A comparison of their Return on Equity (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Net Profit Margin (TTM)

CAT

14.95%

Machinery Industry

Max: 19.74%
Q3: 11.24%
Median: 8.13%
Q1: 5.38%
Min: -1.11%

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.

SARO

2.37%

Aerospace & Defense Industry

Max: 14.54%
Q3: 8.08%
Median: 6.17%
Q1: 2.49%
Min: -1.63%

Falling into the lower quartile for the Aerospace & Defense industry, SARO’s Net Profit Margin of 2.37% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

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

Operating Profit Margin (TTM)

CAT

18.23%

Machinery Industry

Max: 26.63%
Q3: 16.15%
Median: 11.27%
Q1: 7.72%
Min: -4.91%

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.

SARO

7.59%

Aerospace & Defense Industry

Max: 16.63%
Q3: 10.38%
Median: 8.29%
Q1: 6.21%
Min: 0.95%

SARO’s Operating Profit Margin of 7.59% 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. SARO: A comparison of their Operating Profit Margin (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Profitability at a Glance

Symbol	CAT	SARO
Return on Equity (TTM)	49.92%	6.27%
Return on Assets (TTM)	10.81%	2.11%
Net Profit Margin (TTM)	14.95%	2.37%
Operating Profit Margin (TTM)	18.23%	7.59%
Gross Profit Margin (TTM)	36.53%	14.90%

Financial Strength

Current Ratio (MRQ)

CAT

1.34

Machinery Industry

Max: 3.83
Q3: 2.32
Median: 1.72
Q1: 1.28
Min: 0.78

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.

SARO

2.15

Aerospace & Defense Industry

Max: 3.09
Q3: 1.98
Median: 1.23
Q1: 1.03
Min: 0.02

SARO’s Current Ratio of 2.15 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

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

Debt-to-Equity Ratio (MRQ)

CAT

2.18

Machinery Industry

Max: 1.49
Q3: 0.75
Median: 0.44
Q1: 0.26
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.

SARO

0.92

Aerospace & Defense Industry

Max: 1.70
Q3: 1.04
Median: 0.68
Q1: 0.41
Min: 0.00

SARO’s Debt-to-Equity Ratio of 0.92 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. SARO: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Machinery and Aerospace & Defense industry benchmarks.

Interest Coverage Ratio (TTM)

CAT

12.53

Machinery Industry

Max: 67.55
Q3: 33.79
Median: 13.87
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.

SARO

1.29

Aerospace & Defense Industry

Max: 36.57
Q3: 19.90
Median: 7.04
Q1: 2.40
Min: -7.63

In the lower quartile for the Aerospace & Defense industry, SARO’s Interest Coverage Ratio of 1.29 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

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

Financial Strength at a Glance

Symbol	CAT	SARO
Current Ratio (MRQ)	1.34	2.15
Quick Ratio (MRQ)	0.72	1.45
Debt-to-Equity Ratio (MRQ)	2.18	0.92
Interest Coverage Ratio (TTM)	12.53	1.29

Growth

Revenue Growth

CAT vs. SARO: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

CAT vs. SARO: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

CAT

1.37%

Machinery Industry

Max: 5.32%
Q3: 2.84%
Median: 1.87%
Q1: 1.09%
Min: 0.00%

CAT’s Dividend Yield of 1.37% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.

SARO

0.00%

Aerospace & Defense Industry

Max: 2.03%
Q3: 1.22%
Median: 0.43%
Q1: 0.00%
Min: 0.00%

SARO currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

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

Dividend Payout Ratio (TTM)

CAT

28.60%

Machinery Industry

Max: 202.17%
Q3: 98.65%
Median: 55.54%
Q1: 29.03%
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.

SARO

0.00%

Aerospace & Defense Industry

Max: 83.87%
Q3: 49.90%
Median: 16.48%
Q1: 0.00%
Min: 0.00%

SARO has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

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

Dividend at a Glance

Symbol	CAT	SARO
Dividend Yield (TTM)	1.37%	0.00%
Dividend Payout Ratio (TTM)	28.60%	0.00%

Valuation

Price-to-Earnings Ratio (TTM)

CAT

20.88

Machinery Industry

Max: 53.66
Q3: 31.29
Median: 22.00
Q1: 16.18
Min: 7.00

CAT’s P/E Ratio of 20.88 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.

SARO

66.98

Aerospace & Defense Industry

Max: 65.97
Q3: 54.11
Median: 34.53
Q1: 23.66
Min: 0.00

At 66.98, SARO’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Aerospace & Defense industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

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

Price-to-Sales Ratio (TTM)

CAT

3.12

Machinery Industry

Max: 5.04
Q3: 2.72
Median: 1.67
Q1: 1.04
Min: 0.24

CAT’s P/S Ratio of 3.12 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.

SARO

1.59

Aerospace & Defense Industry

Max: 8.07
Q3: 4.49
Median: 2.42
Q1: 1.39
Min: 0.00

SARO’s P/S Ratio of 1.59 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. SARO: A comparison of their Price-to-Sales Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Price-to-Book Ratio (MRQ)

CAT

9.78

Machinery Industry

Max: 7.23
Q3: 3.90
Median: 2.52
Q1: 1.47
Min: 0.49

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.

SARO

4.21

Aerospace & Defense Industry

Max: 13.67
Q3: 7.92
Median: 4.65
Q1: 2.68
Min: 0.82

SARO’s P/B Ratio of 4.21 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. SARO: A comparison of their Price-to-Book Ratio (MRQ) against their respective Machinery and Aerospace & Defense industry benchmarks.

Valuation at a Glance

Symbol	CAT	SARO
Price-to-Earnings Ratio (TTM)	20.88	66.98
Price-to-Sales Ratio (TTM)	3.12	1.59
Price-to-Book Ratio (MRQ)	9.78	4.21
Price-to-Free Cash Flow Ratio (TTM)	25.46	--