CAT
Caterpillar Inc.
Heavy Machinery & Trucks
Market Cap$257.33B
5Y Perf.+221.8%
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DE
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Stock Comparison
CAT vs DE
Revenue, margins, valuation, and 5-year total return — side by side.
DE
Deere & Company
Heavy Machinery & Trucks
Market Cap$181.30B
5Y Perf.+156.7%
CAT vs DE — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | CAT | DE |
|---|---|---|
| Industry | Heavy Machinery & Trucks | Heavy Machinery & Trucks |
| Market Cap | $257.33B | $181.30B |
| Revenue (TTM) | $77.77B | $47.68B |
| Net Income (TTM) | $11.83B | $4.87B |
| Gross Margin | 34.3% | 35.7% |
| Operating Margin | 18.3% | 19.0% |
| Forward P/E | 20.4x | 37.2x |
| 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 | Nov 20 | Nov 26 | Return |
|---|---|---|---|
| Caterpillar Inc. (CAT) | 100 | 321.8 | +221.8% |
| Deere & Company (DE) | 100 | 256.7 | +156.7% |
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 recent price momentum and sentiment. 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 Income Pick
CAT carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 32 yrs, beta 1.77, yield 1.0%
- Rev growth 4.3%, EPS growth -14.6%, 3Y rev CAGR 4.4%
- PEG 0.73 vs DE's 2.28
Best for: income & stability and growth exposure
DE
Deere & Company
The Long-Run Compounder
DE is the clearest fit if your priority is long-term compounding and sleep-well-at-night.
- 7.0% 10Y total return vs CAT's 6.2%
- Lower volatility, beta 0.45, current ratio 2.31x
- Beta 0.45, yield 0.9%, current ratio 2.31x
Best for: long-term compounding 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 | Lower P/E (20.4x vs 37.2x), PEG 0.73 vs 2.28 |
| Quality / Margins | CAT | 15.2% margin vs DE's 10.2% |
| Stability / Safety | DE | Beta 0.45 vs CAT's 1.77 |
| Dividends | CAT | 1.0% yield, 32-year raise streak, vs DE's 0.9% |
| Momentum (1Y) | DE | +42.7% vs CAT's -0.6% |
| Efficiency (ROA) | CAT | 11.7% ROA vs DE's 4.6%, 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.
4leads
6 Total Categories
CATEGORYLEADERvs DEMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
CAT4/6
Valuation MetricsMultiples, price ratios, and targets
CAT6/7
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
CAT8/9
Total Returns1Y, 3Y, 5Y total returns with dividends
Tied
—
Risk & VolatilityBeta, volatility, and downside exposure
DE2/2
Analyst OutlookRatings, price targets, and dividends
CAT2/2
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 $77.8B annually — 1.6x DE's $47.7B. Profitability is closely matched — net margins range from 15.2% (CAT) to 10.2% (DE). On growth, CAT holds the edge at +17.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | CATCaterpillar Inc. | DEDeere & Company |
|---|---|---|
| RevenueTrailing 12 months | $77.8B | $47.7B |
| EBITDAEarnings before interest/tax | $16.7B | $10.2B |
| Net IncomeAfter-tax profit | $11.8B | $4.9B |
| Free Cash FlowCash after capex | $13.3B | $3.9B |
| Gross MarginGross profit ÷ Revenue | +34.3% | +35.7% |
| Operating MarginEBIT ÷ Revenue | +18.3% | +19.0% |
| Net MarginNet income ÷ Revenue | +15.2% | +10.2% |
| FCF MarginFCF ÷ Revenue | +17.0% | +8.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +17.3% | +7.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +45.8% | +7.4% |
CAT leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
CAT leads this category, winning 6 of 7 comparable metrics.
Valuation Metrics
At 29.7x trailing earnings, CAT trades at a 18% valuation discount to DE's 36.3x P/E. Adjusting for growth (PEG ratio), CAT offers better value at 1.06x vs DE's 2.23x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | CATCaterpillar Inc. | DEDeere & Company |
|---|---|---|
| Market CapShares × price | $257.3B | $181.3B |
| Enterprise ValueMkt cap + debt − cash | $290.7B | $237.0B |
| Trailing P/EPrice ÷ TTM EPS | 29.67x | 36.31x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.45x | 37.16x |
| PEG RatioP/E ÷ EPS growth rate | 1.06x | 2.23x |
| EV / EBITDAEnterprise value multiple | 21.58x | 22.26x |
| Price / SalesMarket cap ÷ Revenue | 3.81x | 4.06x |
| Price / BookPrice ÷ Book value/share | 12.29x | 7.02x |
| Price / FCFMarket cap ÷ FCF | 25.05x | 56.11x |
CAT leads this category, winning 6 of 7 comparable metrics.
Profitability & Efficiency
CAT leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
CAT delivers a 58.5% return on equity — every $100 of shareholder capital generates $59 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 | +58.5% | +18.1% |
| ROA (TTM)Return on assets | +11.7% | +4.6% |
| 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 | 18.14x | 3.22x |
CAT leads this category, winning 8 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
Evenly matched — CAT and DE each lead in 3 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in CAT five years ago would be worth $27,417 today (with dividends reinvested), compared to $19,395 for DE. Over the past 12 months, DE leads with a +42.7% total return vs CAT's -0.6%. The 3-year compound annual growth rate (CAGR) favors CAT at 34.3% vs DE's 22.2% — a key indicator of consistent wealth creation.
| Metric | CATCaterpillar Inc. | DEDeere & Company |
|---|---|---|
| YTD ReturnYear-to-date | -5.3% | +44.9% |
| 1-Year ReturnPast 12 months | -0.6% | +42.7% |
| 3-Year ReturnCumulative with dividends | +142.5% | +82.5% |
| 5-Year ReturnCumulative with dividends | +174.2% | +94.0% |
| 10-Year ReturnCumulative with dividends | +623.6% | +702.9% |
| CAGR (3Y)Annualised 3-year return | +34.3% | +22.2% |
Evenly matched — CAT and DE each lead in 3 of 6 comparable metrics.
Risk & Volatility
DE leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
DE is the less volatile stock with a 0.45 beta — it tends to amplify market swings less than CAT's 1.77 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. DE currently trades 93.1% from its 52-week high vs CAT's 52.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | CATCaterpillar Inc. | DEDeere & Company |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.77x | 0.45x |
| 52-Week HighHighest price in past year | $1073.46 | $721.22 |
| 52-Week LowLowest price in past year | $537.08 | $455.91 |
| % of 52W HighCurrent price vs 52-week peak | +52.0% | +93.1% |
| RSI (14)Momentum oscillator 0–100 | 19.5 | 52.7 |
| Avg Volume (50D)Average daily shares traded | 3.0M | 1.2M |
DE leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
CAT leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates CAT as "Buy" and DE as "Buy". Consensus price targets imply 67.4% upside for CAT (target: $935) vs 8.9% for DE (target: $731). For income investors, CAT offers the higher dividend yield at 1.05% vs DE's 0.94%.
| Metric | CATCaterpillar Inc. | DEDeere & Company |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $935.36 | $731.20 |
| # AnalystsCovering analysts | 57 | 46 |
| Dividend YieldAnnual dividend ÷ price | +1.0% | +0.9% |
| Dividend StreakConsecutive years of raises | 32 | 5 |
| Dividend / ShareAnnual DPS | $5.86 | $6.33 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.0% | +0.6% |
CAT leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
CAT leads in 4 of 6 categories (Income & Cash Flow, Valuation Metrics). DE leads in 1 (Risk & Volatility). 1 tied.
Best OverallCaterpillar Inc. (CAT)Leads 4 of 6 categories
Custom Comparison: CAT vs DE
Compare on any lens — Growth, Value, Income, or pick from 130+ individual metrics.
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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). Caterpillar Inc. (CAT) offers the better valuation at 29. 7x trailing P/E (20. 4x forward), making it the more compelling value choice. Analysts rate Caterpillar Inc. (CAT) a "Buy" — based on 57 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, Caterpillar Inc.
(CAT) is the cheapest at 29. 7x versus Deere & Company at 36. 3x. On forward P/E, Caterpillar Inc. is actually cheaper at 20. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Caterpillar Inc. wins at 0. 73x versus Deere & Company's 2. 28x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — CAT or DE?
Over the past 5 years, Caterpillar Inc.
(CAT) delivered a total return of +174. 2%, compared to +94. 0% for Deere & Company (DE). Over 10 years, the gap is even starker: DE returned +702. 9% versus CAT's +623. 6%. 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.
45β versus Caterpillar Inc. 's 1. 77β — meaning CAT is approximately 290% 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 0. 73x versus Deere & Company's 2. 28x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Caterpillar Inc. (CAT) trades at 20. 4x forward P/E versus 37. 2x for Deere & Company — 16. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CAT: 67. 4% to $935. 36.
08Which pays a better dividend — CAT or DE?
All stocks in this comparison pay dividends.
Caterpillar Inc. (CAT) offers the highest yield at 1. 0%, versus 0. 9% for Deere & Company (DE).
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.
45), 0. 9% yield, +702. 9% 10Y return). Caterpillar Inc. (CAT) carries a higher beta of 1. 77 — 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: +702. 9%, CAT: +623. 6%), 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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