CAT
Caterpillar Inc.
Agricultural - Machinery
Market Cap$458.69B
5Y Perf.+679.3%
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Side-by-side financial analysisCAT
DE
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Stock Comparison
CAT vs DE
Revenue, margins, valuation, and 5-year total return — side by side.
DE
Deere & Company
Agricultural - Machinery
Market Cap$159.06B
5Y Perf.+275.0%
CAT vs DE — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | CAT | DE |
|---|---|---|
| Industry | Agricultural - Machinery | Agricultural - Machinery |
| Market Cap | $458.69B | $159.06B |
| Revenue (TTM) | $70.75B | $46.86B |
| Net Income (TTM) | $9.42B | $4.78B |
| Gross Margin | 32.5% | 35.4% |
| Operating Margin | 16.6% | 18.4% |
| Forward P/E | 40.0x | 32.6x |
| Total Debt | $43.33B | $63.94B |
| Cash & Equiv. | $9.98B | $8.28B |
CAT vs DE — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
CAT
DE
| Stock | Jun 20 | Jun 26 | Return |
|---|---|---|---|
| Caterpillar Inc. (CAT) | 100 | 779.3 | +679.3% |
| Deere & Company (DE) | 100 | 375.0 | +275.0% |
Price return only. Dividends and distributions are not included.
Quick Verdict: CAT vs DE
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: CAT leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Deere & Company is the stronger pick specifically for capital preservation and lower volatility and dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
🥇CAT emerged as the overall leader. Track its performance:
CAT
Caterpillar Inc.
The Growth Play
CAT carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 4.3%, EPS growth -14.6%, 3Y rev CAGR 4.4%
- 12.5% 10Y total return vs DE's 6.4%
- PEG 1.42 vs DE's 2.00
Best for: growth exposure and long-term compounding
DE
Deere & Company
The Income Pick
DE is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 5 yrs, beta 0.54, yield 1.1%
- Lower volatility, beta 0.54, current ratio 2.31x
- Beta 0.54, yield 1.1%, current ratio 2.31x
Best for: income & stability and sleep-well-at-night
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | CAT | 4.3% revenue growth vs DE's -11.6% |
| Value | CAT | PEG 1.42 vs 2.00 |
| Quality / Margins | CAT | 13.3% margin vs DE's 10.2% |
| Stability / Safety | DE | Beta 0.54 vs CAT's 1.64 |
| Dividends | DE | 1.1% yield, 5-year raise streak, vs CAT's 0.6% |
| Momentum (1Y) | CAT | +175.7% vs DE's +13.5% |
| Efficiency (ROA) | CAT | 10.0% ROA vs DE's 4.5%, ROIC 15.9% vs 7.8% |
CAT vs DE — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
CAT vs DE — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLCATLAGGINGDE
DEDeere & Company
1leads
CATCaterpillar Inc.
3leads
6 Total Categories
CATEGORYLEADERvs DEMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
CAT4/6
Valuation MetricsMultiples, price ratios, and targets
DE5/7
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
CAT8/9
Total Returns1Y, 3Y, 5Y total returns with dividends
CAT6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
CAT leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
CAT is the larger business by revenue, generating $70.8B annually — 1.5x DE's $46.9B. Profitability is closely matched — net margins range from 13.3% (CAT) to 10.2% (DE). On growth, CAT holds the edge at +22.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | CATCaterpillar Inc. | DEDeere & Company |
|---|---|---|
| RevenueTrailing 12 months | $70.8B | $46.9B |
| EBITDAEarnings before interest/tax | $14.0B | $10.3B |
| Net IncomeAfter-tax profit | $9.4B | $4.8B |
| Free Cash FlowCash after capex | $11.4B | $3.8B |
| Gross MarginGross profit ÷ Revenue | +32.5% | +35.4% |
| Operating MarginEBIT ÷ Revenue | +16.6% | +18.4% |
| Net MarginNet income ÷ Revenue | +13.3% | +10.2% |
| FCF MarginFCF ÷ Revenue | +16.2% | +8.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +22.2% | +6.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +30.2% | -1.4% |
CAT leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
DE leads this category, winning 5 of 7 comparable metrics.
Valuation Metrics
At 31.9x trailing earnings, DE trades at a 39% valuation discount to CAT's 52.4x P/E. Adjusting for growth (PEG ratio), CAT offers better value at 1.86x vs DE's 1.95x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | CATCaterpillar Inc. | DEDeere & Company |
|---|---|---|
| Market CapShares × price | $458.7B | $159.1B |
| Enterprise ValueMkt cap + debt − cash | $492.0B | $214.7B |
| Trailing P/EPrice ÷ TTM EPS | 52.35x | 31.85x |
| Forward P/EPrice ÷ next-FY EPS est. | 39.97x | 32.60x |
| PEG RatioP/E ÷ EPS growth rate | 1.86x | 1.95x |
| EV / EBITDAEnterprise value multiple | 36.52x | 20.17x |
| Price / SalesMarket cap ÷ Revenue | 6.79x | 3.56x |
| Price / BookPrice ÷ Book value/share | 21.69x | 6.16x |
| Price / FCFMarket cap ÷ FCF | 44.65x | 49.23x |
DE leads this category, winning 5 of 7 comparable metrics.
Profitability & Efficiency
CAT leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
CAT delivers a 47.5% return on equity — every $100 of shareholder capital generates $48 in annual profit, vs $18 for DE. CAT carries lower financial leverage with a 2.03x debt-to-equity ratio, signaling a more conservative balance sheet compared to DE's 2.46x. On the Piotroski fundamental quality scale (0–9), DE scores 6/9 vs CAT's 5/9, reflecting solid financial health.
| Metric | CATCaterpillar Inc. | DEDeere & Company |
|---|---|---|
| ROE (TTM)Return on equity | +47.5% | +18.2% |
| ROA (TTM)Return on assets | +10.0% | +4.5% |
| ROICReturn on invested capital | +15.9% | +7.8% |
| ROCEReturn on capital employed | +19.1% | +11.7% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 2.03x | 2.46x |
| Net DebtTotal debt minus cash | $33.4B | $55.7B |
| Cash & Equiv.Liquid assets | $10.0B | $8.3B |
| Total DebtShort + long-term debt | $43.3B | $63.9B |
| Interest CoverageEBIT ÷ Interest expense | 9.22x | 3.07x |
CAT leads this category, winning 8 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
CAT leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in CAT five years ago would be worth $48,451 today (with dividends reinvested), compared to $18,731 for DE. Over the past 12 months, CAT leads with a +175.7% total return vs DE's +13.5%. The 3-year compound annual growth rate (CAGR) favors CAT at 60.8% vs DE's 14.2% — a key indicator of consistent wealth creation.
| Metric | CATCaterpillar Inc. | DEDeere & Company |
|---|---|---|
| YTD ReturnYear-to-date | +65.2% | +26.6% |
| 1-Year ReturnPast 12 months | +175.7% | +13.5% |
| 3-Year ReturnCumulative with dividends | +315.8% | +48.9% |
| 5-Year ReturnCumulative with dividends | +384.5% | +87.3% |
| 10-Year ReturnCumulative with dividends | +1247.4% | +636.2% |
| CAGR (3Y)Annualised 3-year return | +60.8% | +14.2% |
CAT leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — CAT and DE each lead in 1 of 2 comparable metrics.
Risk & Volatility
DE is the less volatile stock with a 0.54 beta — it tends to amplify market swings less than CAT's 1.64 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. CAT currently trades 99.1% from its 52-week high vs DE's 87.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | CATCaterpillar Inc. | DEDeere & Company |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.64x | 0.54x |
| 52-Week HighHighest price in past year | $994.49 | $674.19 |
| 52-Week LowLowest price in past year | $357.73 | $433.00 |
| % of 52W HighCurrent price vs 52-week peak | +99.1% | +87.4% |
| RSI (14)Momentum oscillator 0–100 | 61.4 | 58.1 |
| Avg Volume (50D)Average daily shares traded | 2.5M | 1.1M |
Evenly matched — CAT and DE each lead in 1 of 2 comparable metrics.
Analyst Outlook
Evenly matched — CAT and DE each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates CAT as "Buy" and DE as "Hold". Consensus price targets imply 17.1% upside for DE (target: $690) vs -10.5% for CAT (target: $882). For income investors, DE offers the higher dividend yield at 1.07% vs CAT's 0.59%.
| Metric | CATCaterpillar Inc. | DEDeere & Company |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $882.20 | $690.00 |
| # AnalystsCovering analysts | 53 | 46 |
| Dividend YieldAnnual dividend ÷ price | +0.6% | +1.1% |
| Dividend StreakConsecutive years of raises | 32 | 5 |
| Dividend / ShareAnnual DPS | $5.86 | $6.33 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.1% | +0.7% |
Evenly matched — CAT and DE each lead in 1 of 2 comparable metrics.
Key Takeaway
CAT leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). DE leads in 1 (Valuation Metrics). 2 tied.
Best OverallCaterpillar Inc. (CAT)Leads 3 of 6 categories
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CAT vs DE: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is CAT or DE a better buy right now?
For growth investors, Caterpillar Inc.
(CAT) is the stronger pick with 4. 3% revenue growth year-over-year, versus -11. 6% for Deere & Company (DE). Deere & Company (DE) offers the better valuation at 31. 9x trailing P/E (32. 6x forward), making it the more compelling value choice. Analysts rate Caterpillar Inc. (CAT) a "Buy" — based on 53 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — CAT or DE?
On trailing P/E, Deere & Company (DE) is the cheapest at 31.
9x versus Caterpillar Inc. at 52. 4x. On forward P/E, Deere & Company is actually cheaper at 32. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Caterpillar Inc. wins at 1. 42x versus Deere & Company's 2. 00x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — CAT or DE?
Over the past 5 years, Caterpillar Inc.
(CAT) delivered a total return of +384. 5%, compared to +87. 3% for Deere & Company (DE). Over 10 years, the gap is even starker: CAT returned +1247% versus DE's +636. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — CAT or DE?
By beta (market sensitivity over 5 years), Deere & Company (DE) is the lower-risk stock at 0.
54β versus Caterpillar Inc. 's 1. 64β — meaning CAT is approximately 203% more volatile than DE relative to the S&P 500. On balance sheet safety, Caterpillar Inc. (CAT) carries a lower debt/equity ratio of 2% versus 2% for Deere & Company — giving it more financial flexibility in a downturn.
05Which is growing faster — CAT or DE?
By revenue growth (latest reported year), Caterpillar Inc.
(CAT) is pulling ahead at 4. 3% versus -11. 6% for Deere & Company (DE). On earnings-per-share growth, the picture is similar: Caterpillar Inc. grew EPS -14. 6% year-over-year, compared to -27. 8% for Deere & Company. Over a 3-year CAGR, CAT leads at 4. 4% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — CAT or DE?
Caterpillar Inc.
(CAT) is the more profitable company, earning 13. 1% net margin versus 11. 3% for Deere & Company — meaning it keeps 13. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DE leads at 18. 8% versus 16. 6% for CAT. At the gross margin level — before operating expenses — DE leads at 36. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is CAT or DE more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.
By this metric, Caterpillar Inc. (CAT) is the more undervalued stock at a PEG of 1. 42x versus Deere & Company's 2. 00x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Deere & Company (DE) trades at 32. 6x forward P/E versus 40. 0x for Caterpillar Inc. — 7. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DE: 17. 1% to $690. 00.
08Which pays a better dividend — CAT or DE?
All stocks in this comparison pay dividends.
Deere & Company (DE) offers the highest yield at 1. 1%, versus 0. 6% for Caterpillar Inc. (CAT).
09Is CAT or DE better for a retirement portfolio?
For long-horizon retirement investors, Deere & Company (DE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
54), 1. 1% yield, +636. 2% 10Y return). Caterpillar Inc. (CAT) carries a higher beta of 1. 64 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (DE: +636. 2%, CAT: +1247%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between CAT and DE?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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