CAT
Caterpillar Inc.
Agricultural - Machinery
Market Cap$420.89B
5Y Perf.+653.0%
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Stock Comparison
CAT vs ETN vs EMR vs HON
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%
EMR
Emerson Electric Co.
Industrial - Machinery
Market Cap$77.82B
5Y Perf.+126.8%
HON
Honeywell International Inc.
Conglomerates
Market Cap$132.47B
5Y Perf.+43.3%
CAT vs ETN vs EMR vs HON — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | CAT | ETN | EMR | HON |
|---|---|---|---|---|
| Industry | Agricultural - Machinery | Industrial - Machinery | Industrial - Machinery | Conglomerates |
| Market Cap | $420.89B | $159.41B | $77.82B | $132.47B |
| Revenue (TTM) | $70.75B | $28.52B | $18.32B | $36.76B |
| Net Income (TTM) | $9.42B | $3.99B | $2.44B | $4.10B |
| Gross Margin | 32.5% | 27.6% | 39.4% | 36.9% |
| Operating Margin | 16.6% | 14.0% | 15.0% | 14.9% |
| Forward P/E | 39.2x | 30.9x | 21.3x | 19.9x |
| Total Debt | $43.33B | $11.17B | $13.76B | $34.58B |
| Cash & Equiv. | $9.98B | $622M | $1.54B | $12.49B |
CAT vs ETN vs EMR vs HON — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
CAT
ETN
EMR
HON
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Caterpillar Inc. (CAT) | 100 | 753.0 | +653.0% |
| Eaton Corporation p… (ETN) | 100 | 483.9 | +383.9% |
| Emerson Electric Co. (EMR) | 100 | 226.8 | +126.8% |
| Honeywell Internati… (HON) | 100 | 143.3 | +43.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: CAT vs ETN vs EMR vs HON
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: HON leads in 3 of 7 categories, making it the strongest pick for valuation and capital efficiency and capital preservation and lower volatility. Caterpillar Inc. is the stronger pick specifically for recent price momentum and sentiment and operational efficiency and capital deployment. ETN also leads in specific categories worth noting. As sector peers, any of these can serve as alternatives in the same allocation.
CAT
Caterpillar Inc.
The Long-Run Compounder
CAT is the #2 pick in this set and the best alternative if long-term compounding and valuation efficiency is your priority.
- 12.0% 10Y total return vs ETN's 6.2%
- PEG 1.39 vs HON's 10.82
- +181.8% vs HON's -0.3%
- 10.0% ROA vs HON's 5.3%, ROIC 15.9% vs 12.6%
Best for: long-term compounding and valuation efficiency
ETN
Eaton Corporation plc
The Growth Play
ETN is the clearest fit if your priority is growth exposure and sleep-well-at-night.
- 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
- 10.3% revenue growth vs EMR's 3.0%
- 14.0% margin vs HON's 11.2%
Best for: growth exposure and sleep-well-at-night
EMR
Emerson Electric Co.
The Quality Angle
EMR lags the leaders in this set but could rank higher in a more targeted comparison.
Best for: industrials exposure
HON
Honeywell International Inc.
The Income Pick
HON carries the broadest edge in this set and is the clearest fit for income & stability and defensive.
- Dividend streak 15 yrs, beta 0.74, yield 2.2%
- Beta 0.74, yield 2.2%, current ratio 1.32x
- Lower P/E (19.9x vs 21.3x)
- Beta 0.74 vs CAT's 1.54
Best for: income & stability and defensive
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | ETN | 10.3% revenue growth vs EMR's 3.0% |
| Value | HON | Lower P/E (19.9x vs 21.3x) |
| Quality / Margins | ETN | 14.0% margin vs HON's 11.2% |
| Stability / Safety | HON | Beta 0.74 vs CAT's 1.54 |
| Dividends | HON | 2.2% yield, 15-year raise streak, vs EMR's 1.5% |
| Momentum (1Y) | CAT | +181.8% vs HON's -0.3% |
| Efficiency (ROA) | CAT | 10.0% ROA vs HON's 5.3%, ROIC 15.9% vs 12.6% |
CAT vs ETN vs EMR vs HON — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
FY 2025
FY 2025
CAT vs ETN vs EMR vs HON — Financial Metrics
Side-by-side numbers across 4 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLCATLAGGINGEMR
Who Leads Where
CAT leads in 2 of 6 categories
HON leads 1 • ETN leads 0 • EMR leads 0 • 3 tied
Explore the data ↓EMREmerson Electric Co.
0leads
ETNEaton Corporation plc
0leads
HONHoneywell Internation…
1leads
CATCaterpillar Inc.
2leads
6 Total Categories
CATEGORYLEADERvs HONvs ETNMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
CAT3/6
Valuation MetricsMultiples, price ratios, and targets
HON4/7
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
Tied
—
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 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
CAT is the larger business by revenue, generating $70.8B annually — 3.9x EMR's $18.3B. Profitability is closely matched — net margins range from 14.0% (ETN) to 11.2% (HON). On growth, CAT holds the edge at +22.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | CATCaterpillar Inc. | ETNEaton Corporation… | EMREmerson Electric … | HONHoneywell Interna… |
|---|---|---|---|---|
| RevenueTrailing 12 months | $70.8B | $28.5B | $18.3B | $36.8B |
| EBITDAEarnings before interest/tax | $14.0B | $4.8B | $3.9B | $6.5B |
| Net IncomeAfter-tax profit | $9.4B | $4.0B | $2.4B | $4.1B |
| Free Cash FlowCash after capex | $11.4B | $4.9B | $3.1B | $4.2B |
| Gross MarginGross profit ÷ Revenue | +32.5% | +27.6% | +39.4% | +36.9% |
| Operating MarginEBIT ÷ Revenue | +16.6% | +14.0% | +15.0% | +14.9% |
| Net MarginNet income ÷ Revenue | +13.3% | +14.0% | +13.3% | +11.2% |
| FCF MarginFCF ÷ Revenue | +16.2% | +17.1% | +17.0% | +11.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +22.2% | +16.8% | +2.9% | -6.9% |
| EPS Growth (YoY)Latest quarter vs prior year | +30.2% | -9.4% | +28.2% | -41.9% |
CAT leads this category, winning 3 of 6 comparable metrics.
Valuation Metrics
HON leads this category, winning 4 of 7 comparable metrics.
Valuation Metrics
At 28.4x trailing earnings, HON trades at a 41% valuation discount to CAT's 48.0x P/E. Adjusting for growth (PEG ratio), ETN offers better value at 1.60x vs HON's 15.47x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | CATCaterpillar Inc. | ETNEaton Corporation… | EMREmerson Electric … | HONHoneywell Interna… |
|---|---|---|---|---|
| Market CapShares × price | $420.9B | $159.4B | $77.8B | $132.5B |
| Enterprise ValueMkt cap + debt − cash | $454.2B | $170.0B | $90.0B | $154.6B |
| Trailing P/EPrice ÷ TTM EPS | 48.04x | 39.28x | 34.26x | 28.40x |
| Forward P/EPrice ÷ next-FY EPS est. | 39.18x | 30.88x | 21.30x | 19.86x |
| PEG RatioP/E ÷ EPS growth rate | 1.71x | 1.60x | 7.59x | 15.47x |
| EV / EBITDAEnterprise value multiple | 33.72x | 28.42x | 17.83x | 19.43x |
| Price / SalesMarket cap ÷ Revenue | 6.23x | 5.81x | 4.32x | 3.54x |
| Price / BookPrice ÷ Book value/share | 19.90x | 8.22x | 3.86x | 8.70x |
| Price / FCFMarket cap ÷ FCF | 40.97x | 35.65x | 29.18x | 24.56x |
HON leads this category, winning 4 of 7 comparable metrics.
Profitability & Efficiency
Evenly matched — CAT and ETN each lead in 4 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 $12 for EMR. ETN carries lower financial leverage with a 0.57x debt-to-equity ratio, signaling a more conservative balance sheet compared to HON's 2.24x. On the Piotroski fundamental quality scale (0–9), EMR scores 7/9 vs CAT's 5/9, reflecting strong financial health.
| Metric | CATCaterpillar Inc. | ETNEaton Corporation… | EMREmerson Electric … | HONHoneywell Interna… |
|---|---|---|---|---|
| ROE (TTM)Return on equity | +47.5% | +20.8% | +12.1% | +23.1% |
| ROA (TTM)Return on assets | +10.0% | +9.0% | +5.8% | +5.3% |
| ROICReturn on invested capital | +15.9% | +13.6% | +8.2% | +12.6% |
| ROCEReturn on capital employed | +19.1% | +16.8% | +10.0% | +12.6% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 | 7 | 6 |
| Debt / EquityFinancial leverage | 2.03x | 0.57x | 0.68x | 2.24x |
| Net DebtTotal debt minus cash | $33.4B | $10.5B | $12.2B | $22.1B |
| Cash & Equiv.Liquid assets | $10.0B | $622M | $1.5B | $12.5B |
| Total DebtShort + long-term debt | $43.3B | $11.2B | $13.8B | $34.6B |
| Interest CoverageEBIT ÷ Interest expense | 9.22x | 12.65x | 5.14x | 3.92x |
Evenly matched — CAT and ETN each lead in 4 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 $10,135 for HON. Over the past 12 months, CAT leads with a +181.8% total return vs HON's -0.3%. The 3-year compound annual growth rate (CAGR) favors CAT at 62.4% vs HON's 3.8% — a key indicator of consistent wealth creation.
| Metric | CATCaterpillar Inc. | ETNEaton Corporation… | EMREmerson Electric … | HONHoneywell Interna… |
|---|---|---|---|---|
| YTD ReturnYear-to-date | +51.7% | +25.9% | +2.3% | +7.3% |
| 1-Year ReturnPast 12 months | +181.8% | +39.0% | +29.7% | -0.3% |
| 3-Year ReturnCumulative with dividends | +328.4% | +147.0% | +71.5% | +11.8% |
| 5-Year ReturnCumulative with dividends | +291.3% | +194.8% | +63.8% | +1.3% |
| 10-Year ReturnCumulative with dividends | +1203.2% | +624.1% | +199.5% | +127.7% |
| CAGR (3Y)Annualised 3-year return | +62.4% | +35.2% | +19.7% | +3.8% |
CAT leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — CAT and HON each lead in 1 of 2 comparable metrics.
Risk & Volatility
HON is the less volatile stock with a 0.74 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 EMR's 83.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | CATCaterpillar Inc. | ETNEaton Corporation… | EMREmerson Electric … | HONHoneywell Interna… |
|---|---|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.54x | 1.42x | 1.52x | 0.74x |
| 52-Week HighHighest price in past year | $908.90 | $435.43 | $165.15 | $248.18 |
| 52-Week LowLowest price in past year | $318.11 | $293.07 | $106.53 | $186.76 |
| % of 52W HighCurrent price vs 52-week peak | +99.5% | +94.4% | +83.8% | +84.2% |
| RSI (14)Momentum oscillator 0–100 | 69.7 | 62.6 | 43.0 | 32.8 |
| Avg Volume (50D)Average daily shares traded | 2.4M | 2.5M | 2.7M | 3.7M |
Evenly matched — CAT and HON each lead in 1 of 2 comparable metrics.
Analyst Outlook
Evenly matched — EMR and HON each lead in 1 of 2 comparable metrics.
Analyst Outlook
Analyst consensus: CAT as "Buy", ETN as "Buy", EMR as "Buy", HON as "Buy". Consensus price targets imply 17.0% upside for EMR (target: $162) vs -8.8% for CAT (target: $825). For income investors, HON offers the higher dividend yield at 2.21% vs CAT's 0.65%.
| Metric | CATCaterpillar Inc. | ETNEaton Corporation… | EMREmerson Electric … | HONHoneywell Interna… |
|---|---|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy | Buy | Buy |
| Price TargetConsensus 12-month target | $824.80 | $379.78 | $161.92 | $243.83 |
| # AnalystsCovering analysts | 53 | 39 | 41 | 28 |
| Dividend YieldAnnual dividend ÷ price | +0.6% | +1.0% | +1.5% | +2.2% |
| Dividend StreakConsecutive years of raises | 8 | 24 | 37 | 15 |
| Dividend / ShareAnnual DPS | $5.86 | $4.17 | $2.10 | $4.63 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.2% | +1.2% | +1.6% | +2.9% |
Evenly matched — EMR and HON each lead in 1 of 2 comparable metrics.
Key Takeaway
CAT leads in 2 of 6 categories (Income & Cash Flow, Total Returns). HON leads in 1 (Valuation Metrics). 3 tied.
Best OverallCaterpillar Inc. (CAT)Leads 2 of 6 categories
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CAT vs ETN vs EMR vs HON: Key Questions Answered
10 questions · data-driven answers · updated daily
01Is CAT or ETN or EMR or HON 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 3. 0% for Emerson Electric Co. (EMR). Honeywell International Inc. (HON) offers the better valuation at 28. 4x trailing P/E (19. 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 or EMR or HON?
On trailing P/E, Honeywell International Inc.
(HON) is the cheapest at 28. 4x versus Caterpillar Inc. at 48. 0x. On forward P/E, Honeywell International Inc. is actually cheaper at 19. 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 Honeywell International Inc. 's 10. 82x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — CAT or ETN or EMR or HON?
Over the past 5 years, Caterpillar Inc.
(CAT) delivered a total return of +291. 3%, compared to +1. 3% for Honeywell International Inc. (HON). Over 10 years, the gap is even starker: CAT returned +1203% versus HON's +127. 7%. 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 or EMR or HON?
By beta (market sensitivity over 5 years), Honeywell International Inc.
(HON) is the lower-risk stock at 0. 74β versus Caterpillar Inc. 's 1. 54β — meaning CAT is approximately 108% more volatile than HON 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 Honeywell International Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — CAT or ETN or EMR or HON?
By revenue growth (latest reported year), Eaton Corporation plc (ETN) is pulling ahead at 10.
3% versus 3. 0% for Emerson Electric Co. (EMR). On earnings-per-share growth, the picture is similar: Emerson Electric Co. grew EPS 17. 8% year-over-year, compared to -15. 5% for Honeywell International 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 or EMR or HON?
Eaton Corporation plc (ETN) is the more profitable company, earning 14.
9% net margin versus 12. 6% for Honeywell International Inc. — meaning it keeps 14. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: EMR leads at 19. 6% versus 16. 6% for CAT. At the gross margin level — before operating expenses — EMR leads at 52. 8%, 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 or EMR or HON 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 Honeywell International Inc. 's 10. 82x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Honeywell International Inc. (HON) trades at 19. 9x forward P/E versus 39. 2x for Caterpillar Inc. — 19. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for EMR: 17. 0% to $161. 92.
08Which pays a better dividend — CAT or ETN or EMR or HON?
All stocks in this comparison pay dividends.
Honeywell International Inc. (HON) offers the highest yield at 2. 2%, versus 0. 6% for Caterpillar Inc. (CAT).
09Is CAT or ETN or EMR or HON 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). Emerson Electric Co. (EMR) carries a higher beta of 1. 52 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (CAT: +1203%, EMR: +199. 5%), 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 and EMR and HON?
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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