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CAT vs. WSO.B: Caterpillar vs. Watsco Stock Comparison

How do Caterpillar (CAT) and Watsco (WSO.B) 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 Watsco (WSO.B) both fall under the Capital Goods industry group, but CAT is classified in Machinery while WSO.B is classified in Trading Companies & Distributors.

Company profile comparison for Caterpillar (CAT) and Watsco (WSO.B)
Profile ItemCATWSO.B
NameCaterpillar Inc.Watsco Inc. Class B Common Stock
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryMachineryTrading Companies & Distributors
GICS Sub-IndustryConstruction Machinery & Heavy Transportation EquipmentTrading Companies & Distributors
Market Capitalization255.63 billion USD12.92 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962March 17, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CAT
WSO.B
GSPC
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Caterpillar (CAT) vs. Watsco (WSO.B), 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 Watsco (WSO.B). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Caterpillar (CAT) and Watsco (WSO.B). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Caterpillar (CAT) and Watsco (WSO.B)
MetricCATWSO.B
Total Return (1Y)6.75%-11.21%
Total Return (3Y, Annualized)38.34%-3.05%
Total Return (5Y, Annualized)25.28%4.30%

Risk Profile

Drawdown History

CAT
WSO.B
GSPC
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Caterpillar (CAT) vs. Watsco (WSO.B), 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 Watsco (WSO.B). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Caterpillar (CAT) has an aggressive beta of 1.65, indicating higher sensitivity to broad-market moves, while Watsco (WSO.B) is defensive at 0.64 and tends to be less market-sensitive — they sit on opposite ends of the beta spectrum.

Caterpillar (CAT) trades around 2.82M shares per day on average, while Watsco (WSO.B) sees only 74 — a volume gap that can matter for position sizing, exit liquidity, and order execution.

Risk profile metrics for Caterpillar (CAT) and Watsco (WSO.B)
MetricCATWSO.B
Volatility (1Y, Annualized)41.33%40.28%
Beta (5Y)1.650.64
Max Drawdown (5Y)-47.79%-43.41%
Avg. Volume (3M)2.82M74

Risk-Adjusted Performance

Risk-Return Positioning

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CAT and WSO.B 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 Watsco (WSO.B)
MetricCATWSO.B
Sharpe Ratio (1Y)0.06-0.38
Sortino Ratio (1Y)0.08-0.57

Profitability

ROE (TTM)

Caterpillar (CAT) at 56.14% clears its industry range for ROE, a sharper capital-efficiency signal than Watsco (WSO.B) at 16.21%, which is closer to a typical peer reading.

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%

WSO.B

Capital Goods industry group

16.21%

Max
40.55%
Q3
19.29%
WSO.B
16.21%
Median
12.12%
Q1
4.08%
Min
-17.12%
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Caterpillar (CAT) vs. Watsco (WSO.B): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Caterpillar (CAT) at 15.21% retains a top-quartile share of revenue as profit, ahead of Watsco (WSO.B) at 6.31%, which keeps about the industry-typical share.

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%

WSO.B

Capital Goods industry group

6.31%

Max
27.47%
Q3
12.10%
WSO.B
6.31%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Caterpillar (CAT) vs. Watsco (WSO.B): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Caterpillar (CAT) at 20.19% operates in the top operating margin quartile, ahead of Watsco (WSO.B) at 10.14%, which runs around its industry’s norm.

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%

WSO.B

Capital Goods industry group

10.14%

Max
36.60%
Q3
18.33%
Median
11.12%
WSO.B
10.14%
Q1
5.14%
Min
-12.63%
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Caterpillar (CAT) vs. Watsco (WSO.B): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Caterpillar (CAT) and Watsco (WSO.B)
MetricCATWSO.B
ROE (TTM)56.14%16.21%
ROA (TTM)9.09%8.27%
Net Margin (TTM)15.21%6.31%
Operating Margin (TTM)20.19%10.14%
Gross Margin (TTM)29.54%27.18%

Growth

Revenue Growth

Caterpillar (CAT) at 4.29% is around its peer norm for revenue growth, while Watsco (WSO.B) at -4.98% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Caterpillar (CAT) vs. Watsco (WSO.B): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Caterpillar (CAT) at -14.69% and Watsco (WSO.B) at -7.47% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Caterpillar (CAT) vs. Watsco (WSO.B): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Caterpillar (CAT) and Watsco (WSO.B)
MetricCATWSO.B
Revenue Growth (YoY)4.29%-4.98%
Revenue Growth (3Y CAGR)4.38%-0.16%
EPS Growth (YoY)-14.69%-7.47%
EPS Growth (3Y CAGR)14.17%-6.89%

Financial Strength

Current Ratio (MRQ)

Watsco (WSO.B) at 3.15 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

WSO.B

Capital Goods industry group

3.15

Max
5.22
WSO.B
3.15
Q3
2.95
Median
2.08
Q1
1.43
Min
0.36
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Caterpillar (CAT) vs. Watsco (WSO.B): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Watsco (WSO.B) at 0.16 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

WSO.B

Capital Goods industry group

0.16

Max
2.33
Q3
1.12
Median
0.60
Q1
0.29
WSO.B
0.16
Min
0.00
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Caterpillar (CAT) vs. Watsco (WSO.B): 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 Watsco (WSO.B)
MetricCATWSO.B
Current Ratio (MRQ)1.423.15
Debt / Equity (MRQ)2.100.16
Net Debt / EBITDA2.25-0.14

Dividends

Dividend Yield (TTM)

Caterpillar (CAT) at 1.13% pays an industry-typical yield; Watsco (WSO.B) at 4.02% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

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%

WSO.B

Capital Goods industry group

4.02%

WSO.B
4.02%
Max
2.66%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%
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Caterpillar (CAT) vs. Watsco (WSO.B): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Watsco (WSO.B) reports payout ratio above 100% at 109.66%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Caterpillar (CAT) reports 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%

WSO.B

Capital Goods industry group

109.66%

WSO.B
109.66%
Max
67.39%
Q3
28.02%
Median
6.86%
Q1
0.00%
Min
0.00%
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Caterpillar (CAT) vs. Watsco (WSO.B): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Caterpillar (CAT) and Watsco (WSO.B)
MetricCATWSO.B
Dividend Yield (TTM)1.13%4.02%
Dividend Payout Ratio (TTM)24.18%109.66%

Valuation

P/E Ratio (TTM)

Both Caterpillar (CAT) at 21.92 and Watsco (WSO.B) at 27.26 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

WSO.B

Capital Goods industry group

27.26

Max
59.38
Q3
35.92
WSO.B
27.26
Median
25.41
Q1
19.47
Min
3.03
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Caterpillar (CAT) vs. Watsco (WSO.B): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Caterpillar (CAT) at 3.29 and Watsco (WSO.B) at 1.74 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

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

WSO.B

Capital Goods industry group

1.74

Max
7.54
Q3
3.76
Median
2.15
WSO.B
1.74
Q1
1.03
Min
0.03
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Caterpillar (CAT) vs. Watsco (WSO.B): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Watsco (WSO.B) at 3.99 sits near its industry’s typical P/B ratio, while Caterpillar (CAT) at 11.90 prices above its benchmark range — CAT looks rich relative to book.

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

WSO.B

Capital Goods industry group

3.99

Max
9.66
Q3
5.00
WSO.B
3.99
Median
3.12
Q1
1.81
Min
-1.08
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Caterpillar (CAT) vs. Watsco (WSO.B): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Caterpillar (CAT) and Watsco (WSO.B)
MetricCATWSO.B
P/E Ratio (TTM)21.9227.26
P/S Ratio (TTM)3.291.74
P/B Ratio (MRQ)11.903.99
Free Cash Flow Yield (TTM)1.55%3.50%