CAT vs. TT: Caterpillar vs. Trane Technologies Stock Comparison

November 11, 2026

How do Caterpillar (CAT) and Trane Technologies (TT) 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 Trane Technologies (TT) both fall under the Capital Goods industry group, but CAT is classified in Machinery while TT is classified in Building Products.

Company profile comparison for Caterpillar (CAT) and Trane Technologies (TT)
Profile Item	CAT	TT
Name	Caterpillar Inc.	Trane Technologies plc
Country/Region	United States	Ireland
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Machinery	Building Products
GICS Sub-Industry	Construction Machinery & Heavy Transportation Equipment	Building Products
Market Capitalization	255.63 billion USD	87.94 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1962	March 17, 1980
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

CAT

GSPC

Caterpillar (CAT) vs. Trane Technologies (TT), 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 Trane Technologies (TT). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Caterpillar (CAT) and Trane Technologies (TT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Caterpillar (CAT) and Trane Technologies (TT)
Metric	CAT	TT
Total Return (1Y)	6.75%	-2.56%
Total Return (3Y, Annualized)	38.34%	25.06%
Total Return (5Y, Annualized)	25.28%	18.70%

Risk Profile

Drawdown History

CAT

GSPC

Caterpillar (CAT) vs. Trane Technologies (TT), 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 Trane Technologies (TT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Caterpillar (CAT) and Trane Technologies (TT)
Metric	CAT	TT
Volatility (1Y, Annualized)	41.33%	30.26%
Beta (5Y)	1.65	1.18
Max Drawdown (5Y)	-47.79%	-39.76%
Avg. Volume (3M)	2.82M	1.24M

Risk-Adjusted Performance

Risk-Return Positioning

CAT and TT 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 Trane Technologies (TT)
Metric	CAT	TT
Sharpe Ratio (1Y)	0.06	-0.23
Sortino Ratio (1Y)	0.08	-0.31

Profitability

ROE (TTM)

Both companies show strong equity returns, but Caterpillar (CAT) at 56.14% is the standout with ROE above its industry range; Trane Technologies (TT) at 36.94% also sits in the top quartile.

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%

TT

Capital Goods industry group

36.94%

Max: 40.55%
TT: 36.94%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

Caterpillar (CAT) vs. Trane Technologies (TT): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Caterpillar (CAT) at 15.21% and Trane Technologies (TT) at 13.56% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

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%

TT

Capital Goods industry group

13.56%

Max: 27.47%
TT: 13.56%
Q3: 12.10%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Caterpillar (CAT) vs. Trane Technologies (TT): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Caterpillar (CAT) at 20.19% and Trane Technologies (TT) at 19.85% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

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%

TT

Capital Goods industry group

19.85%

Max: 36.60%
TT: 19.85%
Q3: 18.33%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

Caterpillar (CAT) vs. Trane Technologies (TT): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Caterpillar (CAT) and Trane Technologies (TT)
Metric	CAT	TT
ROE (TTM)	56.14%	36.94%
ROA (TTM)	9.09%	11.42%
Net Margin (TTM)	15.21%	13.56%
Operating Margin (TTM)	20.19%	19.85%
Gross Margin (TTM)	29.54%	34.99%

Growth

Revenue Growth

Both Caterpillar (CAT) at 4.29% and Trane Technologies (TT) at 7.48% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Caterpillar (CAT) vs. Trane Technologies (TT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Caterpillar (CAT) at -14.69% and Trane Technologies (TT) at 15.48% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Caterpillar (CAT) vs. Trane Technologies (TT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Caterpillar (CAT) and Trane Technologies (TT)
Metric	CAT	TT
Revenue Growth (YoY)	4.29%	7.48%
Revenue Growth (3Y CAGR)	4.38%	10.06%
EPS Growth (YoY)	-14.69%	15.48%
EPS Growth (3Y CAGR)	14.17%	20.17%

Financial Strength

Current Ratio (MRQ)

Both Caterpillar (CAT) at 1.42 and Trane Technologies (TT) at 1.12 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

1.42

Max: 5.22
Q3: 2.95
Median: 2.08
Q1: 1.43
CAT: 1.42
Min: 0.36

TT

Capital Goods industry group

1.12

Max: 5.22
Q3: 2.95
Median: 2.08
Q1: 1.43
TT: 1.12
Min: 0.36

Caterpillar (CAT) vs. Trane Technologies (TT): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Trane Technologies (TT) at 0.46 carries an industry-typical debt-to-equity mix, while Caterpillar (CAT) at 2.10 uses more debt funding than most peers.

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

TT

Capital Goods industry group

0.46

Max: 2.33
Q3: 1.12
Median: 0.60
TT: 0.46
Q1: 0.29
Min: 0.00

Caterpillar (CAT) vs. Trane Technologies (TT): 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 Trane Technologies (TT)
Metric	CAT	TT
Current Ratio (MRQ)	1.42	1.12
Debt / Equity (MRQ)	2.10	0.46
Net Debt / EBITDA	2.25	0.66

Dividends

Dividend Yield (TTM)

Both Caterpillar (CAT) at 1.13% and Trane Technologies (TT) at 1.04% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

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%

TT

Capital Goods industry group

1.04%

Max: 2.66%
Q3: 1.14%
TT: 1.04%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

Caterpillar (CAT) vs. Trane Technologies (TT): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Caterpillar (CAT) at 24.18% pays out a band-typical share of earnings, while Trane Technologies (TT) at 28.42% distributes more than its industry norm — less retained, thinner cover.

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%

TT

Capital Goods industry group

28.42%

Max: 67.39%
TT: 28.42%
Q3: 28.02%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

Caterpillar (CAT) vs. Trane Technologies (TT): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Caterpillar (CAT) and Trane Technologies (TT)
Metric	CAT	TT
Dividend Yield (TTM)	1.13%	1.04%
Dividend Payout Ratio (TTM)	24.18%	28.42%

Valuation

P/E Ratio (TTM)

Both Caterpillar (CAT) at 21.92 and Trane Technologies (TT) at 27.92 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

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

TT

Capital Goods industry group

27.92

Max: 59.38
Q3: 35.92
TT: 27.92
Median: 25.41
Q1: 19.47
Min: 3.03

Caterpillar (CAT) vs. Trane Technologies (TT): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Caterpillar (CAT) at 3.29 is priced about in line with its industry on P/S ratio, while Trane Technologies (TT) at 3.79 sits in the pricier quartile — TT costs more per dollar of 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

TT

Capital Goods industry group

3.79

Max: 7.54
TT: 3.79
Q3: 3.76
Median: 2.15
Q1: 1.03
Min: 0.03

Caterpillar (CAT) vs. Trane Technologies (TT): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Trane Technologies (TT) at 9.66 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

TT

Capital Goods industry group

9.66

TT: 9.66
Max: 9.66
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08

Caterpillar (CAT) vs. Trane Technologies (TT): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Caterpillar (CAT) and Trane Technologies (TT)
Metric	CAT	TT
P/E Ratio (TTM)	21.92	27.92
P/S Ratio (TTM)	3.29	3.79
P/B Ratio (MRQ)	11.90	9.66
Free Cash Flow Yield (TTM)	1.55%	3.94%