CAT
Caterpillar Inc.
Agricultural - Machinery
Market Cap$420.89B
5Y Perf.+653.0%
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Stock Comparison
CAT vs ETN
Revenue, margins, valuation, and 5-year total return — side by side.
ETN
Eaton Corporation plc
Industrial - Machinery
Market Cap$159.41B
5Y Perf.+383.9%
CAT vs ETN — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | CAT | ETN |
|---|---|---|
| Industry | Agricultural - Machinery | Industrial - Machinery |
| Market Cap | $420.89B | $159.41B |
| Revenue (TTM) | $70.75B | $28.52B |
| Net Income (TTM) | $9.42B | $3.99B |
| Gross Margin | 32.5% | 27.6% |
| Operating Margin | 16.6% | 14.0% |
| Forward P/E | 39.2x | 30.9x |
| Total Debt | $43.33B | $11.17B |
| Cash & Equiv. | $9.98B | $622M |
CAT vs ETN — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
CAT
ETN
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Caterpillar Inc. (CAT) | 100 | 753.0 | +653.0% |
| Eaton Corporation p… (ETN) | 100 | 483.9 | +383.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: CAT vs ETN
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: ETN leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Caterpillar Inc. is the stronger pick specifically for recent price momentum and sentiment and operational efficiency and capital deployment. As sector peers, any of these can serve as alternatives in the same allocation.
CAT
Caterpillar Inc.
The Long-Run Compounder
CAT is the clearest fit if your priority is long-term compounding and valuation efficiency.
- 12.0% 10Y total return vs ETN's 6.2%
- PEG 1.39 vs ETN's 2.45
- +181.8% vs ETN's +39.0%
Best for: long-term compounding and valuation efficiency
ETN
Eaton Corporation plc
The Income Pick
ETN carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 24 yrs, beta 1.42, yield 1.0%
- Rev growth 10.3%, EPS growth 10.1%, 3Y rev CAGR 9.8%
- Lower volatility, beta 1.42, Low D/E 57.4%, current ratio 1.32x
Best for: income & stability and growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | ETN | 10.3% revenue growth vs CAT's 4.3% |
| Value | ETN | Lower P/E (30.9x vs 39.2x) |
| Quality / Margins | ETN | 14.0% margin vs CAT's 13.3% |
| Stability / Safety | ETN | Beta 1.42 vs CAT's 1.54, lower leverage |
| Dividends | ETN | 1.0% yield, 24-year raise streak, vs CAT's 0.6% |
| Momentum (1Y) | CAT | +181.8% vs ETN's +39.0% |
| Efficiency (ROA) | CAT | 10.0% ROA vs ETN's 9.0%, ROIC 15.9% vs 13.6% |
CAT vs ETN — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
CAT vs ETN — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLETNLAGGINGCAT
CATCaterpillar Inc.
2leads
ETNEaton Corporation plc
3leads
6 Total Categories
CATEGORYLEADERvs CATMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
CAT4/6
Valuation MetricsMultiples, price ratios, and targets
ETN7/7
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ETN5/9
Total Returns1Y, 3Y, 5Y total returns with dividends
CAT6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
ETN2/2
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 $70.8B annually — 2.5x ETN's $28.5B. Profitability is closely matched — net margins range from 14.0% (ETN) to 13.3% (CAT). On growth, CAT holds the edge at +22.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | CATCaterpillar Inc. | ETNEaton Corporation… |
|---|---|---|
| RevenueTrailing 12 months | $70.8B | $28.5B |
| EBITDAEarnings before interest/tax | $14.0B | $4.8B |
| Net IncomeAfter-tax profit | $9.4B | $4.0B |
| Free Cash FlowCash after capex | $11.4B | $4.9B |
| Gross MarginGross profit ÷ Revenue | +32.5% | +27.6% |
| Operating MarginEBIT ÷ Revenue | +16.6% | +14.0% |
| Net MarginNet income ÷ Revenue | +13.3% | +14.0% |
| FCF MarginFCF ÷ Revenue | +16.2% | +17.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +22.2% | +16.8% |
| EPS Growth (YoY)Latest quarter vs prior year | +30.2% | -9.4% |
CAT leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
ETN leads this category, winning 7 of 7 comparable metrics.
Valuation Metrics
At 39.3x trailing earnings, ETN trades at a 18% valuation discount to CAT's 48.0x P/E. Adjusting for growth (PEG ratio), ETN offers better value at 1.60x vs CAT's 1.71x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | CATCaterpillar Inc. | ETNEaton Corporation… |
|---|---|---|
| Market CapShares × price | $420.9B | $159.4B |
| Enterprise ValueMkt cap + debt − cash | $454.2B | $170.0B |
| Trailing P/EPrice ÷ TTM EPS | 48.04x | 39.28x |
| Forward P/EPrice ÷ next-FY EPS est. | 39.18x | 30.88x |
| PEG RatioP/E ÷ EPS growth rate | 1.71x | 1.60x |
| EV / EBITDAEnterprise value multiple | 33.72x | 28.42x |
| Price / SalesMarket cap ÷ Revenue | 6.23x | 5.81x |
| Price / BookPrice ÷ Book value/share | 19.90x | 8.22x |
| Price / FCFMarket cap ÷ FCF | 40.97x | 35.65x |
ETN leads this category, winning 7 of 7 comparable metrics.
Profitability & Efficiency
ETN leads this category, winning 5 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 $21 for ETN. ETN carries lower financial leverage with a 0.57x debt-to-equity ratio, signaling a more conservative balance sheet compared to CAT's 2.03x. On the Piotroski fundamental quality scale (0–9), ETN scores 6/9 vs CAT's 5/9, reflecting solid financial health.
| Metric | CATCaterpillar Inc. | ETNEaton Corporation… |
|---|---|---|
| ROE (TTM)Return on equity | +47.5% | +20.8% |
| ROA (TTM)Return on assets | +10.0% | +9.0% |
| ROICReturn on invested capital | +15.9% | +13.6% |
| ROCEReturn on capital employed | +19.1% | +16.8% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 2.03x | 0.57x |
| Net DebtTotal debt minus cash | $33.4B | $10.5B |
| Cash & Equiv.Liquid assets | $10.0B | $622M |
| Total DebtShort + long-term debt | $43.3B | $11.2B |
| Interest CoverageEBIT ÷ Interest expense | 9.22x | 12.65x |
ETN leads this category, winning 5 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 $39,125 today (with dividends reinvested), compared to $29,478 for ETN. Over the past 12 months, CAT leads with a +181.8% total return vs ETN's +39.0%. The 3-year compound annual growth rate (CAGR) favors CAT at 62.4% vs ETN's 35.2% — a key indicator of consistent wealth creation.
| Metric | CATCaterpillar Inc. | ETNEaton Corporation… |
|---|---|---|
| YTD ReturnYear-to-date | +51.7% | +25.9% |
| 1-Year ReturnPast 12 months | +181.8% | +39.0% |
| 3-Year ReturnCumulative with dividends | +328.4% | +147.0% |
| 5-Year ReturnCumulative with dividends | +291.3% | +194.8% |
| 10-Year ReturnCumulative with dividends | +1203.2% | +624.1% |
| CAGR (3Y)Annualised 3-year return | +62.4% | +35.2% |
CAT leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — CAT and ETN each lead in 1 of 2 comparable metrics.
Risk & Volatility
ETN is the less volatile stock with a 1.42 beta — it tends to amplify market swings less than CAT's 1.54 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. CAT currently trades 99.5% from its 52-week high vs ETN's 94.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | CATCaterpillar Inc. | ETNEaton Corporation… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.54x | 1.42x |
| 52-Week HighHighest price in past year | $908.90 | $435.43 |
| 52-Week LowLowest price in past year | $318.11 | $293.07 |
| % of 52W HighCurrent price vs 52-week peak | +99.5% | +94.4% |
| RSI (14)Momentum oscillator 0–100 | 69.7 | 62.6 |
| Avg Volume (50D)Average daily shares traded | 2.4M | 2.5M |
Evenly matched — CAT and ETN each lead in 1 of 2 comparable metrics.
Analyst Outlook
ETN leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates CAT as "Buy" and ETN as "Buy". Consensus price targets imply -7.6% upside for ETN (target: $380) vs -8.8% for CAT (target: $825). For income investors, ETN offers the higher dividend yield at 1.02% vs CAT's 0.65%.
| Metric | CATCaterpillar Inc. | ETNEaton Corporation… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $824.80 | $379.78 |
| # AnalystsCovering analysts | 53 | 39 |
| Dividend YieldAnnual dividend ÷ price | +0.6% | +1.0% |
| Dividend StreakConsecutive years of raises | 8 | 24 |
| Dividend / ShareAnnual DPS | $5.86 | $4.17 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.2% | +1.2% |
ETN leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
ETN leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). CAT leads in 2 (Income & Cash Flow, Total Returns). 1 tied.
Best OverallEaton Corporation plc (ETN)Leads 3 of 6 categories
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CAT vs ETN: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is CAT or ETN a better buy right now?
For growth investors, Eaton Corporation plc (ETN) is the stronger pick with 10.
3% revenue growth year-over-year, versus 4. 3% for Caterpillar Inc. (CAT). Eaton Corporation plc (ETN) offers the better valuation at 39. 3x trailing P/E (30. 9x 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 ETN?
On trailing P/E, Eaton Corporation plc (ETN) is the cheapest at 39.
3x versus Caterpillar Inc. at 48. 0x. On forward P/E, Eaton Corporation plc is actually cheaper at 30. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Caterpillar Inc. wins at 1. 39x versus Eaton Corporation plc's 2. 45x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — CAT or ETN?
Over the past 5 years, Caterpillar Inc.
(CAT) delivered a total return of +291. 3%, compared to +194. 8% for Eaton Corporation plc (ETN). Over 10 years, the gap is even starker: CAT returned +1203% versus ETN's +624. 1%. 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 ETN?
By beta (market sensitivity over 5 years), Eaton Corporation plc (ETN) is the lower-risk stock at 1.
42β versus Caterpillar Inc. 's 1. 54β — meaning CAT is approximately 8% more volatile than ETN relative to the S&P 500. On balance sheet safety, Eaton Corporation plc (ETN) carries a lower debt/equity ratio of 57% versus 2% for Caterpillar Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — CAT or ETN?
By revenue growth (latest reported year), Eaton Corporation plc (ETN) is pulling ahead at 10.
3% versus 4. 3% for Caterpillar Inc. (CAT). On earnings-per-share growth, the picture is similar: Eaton Corporation plc grew EPS 10. 1% year-over-year, compared to -14. 6% for Caterpillar Inc.. Over a 3-year CAGR, ETN leads at 9. 8% 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 ETN?
Eaton Corporation plc (ETN) is the more profitable company, earning 14.
9% net margin versus 13. 1% for Caterpillar Inc. — meaning it keeps 14. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ETN leads at 19. 1% versus 16. 6% for CAT. At the gross margin level — before operating expenses — ETN leads at 37. 6%, 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 ETN 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. 39x versus Eaton Corporation plc's 2. 45x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Eaton Corporation plc (ETN) trades at 30. 9x forward P/E versus 39. 2x for Caterpillar Inc. — 8. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ETN: -7. 6% to $379. 78.
08Which pays a better dividend — CAT or ETN?
All stocks in this comparison pay dividends.
Eaton Corporation plc (ETN) offers the highest yield at 1. 0%, versus 0. 6% for Caterpillar Inc. (CAT).
09Is CAT or ETN better for a retirement portfolio?
For long-horizon retirement investors, Caterpillar Inc.
(CAT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0. 6% yield, +1203% 10Y return). Both have compounded well over 10 years (CAT: +1203%, ETN: +624. 1%), 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 ETN?
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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Revenue Growth>
%
(CAT: 22.2% · ETN: 16.8%)Net Margin>
%
(CAT: 13.3% · ETN: 14.0%)P/E Ratio<
x
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