EXP vs CAT vs DE vs MLM

For growth investors, Caterpillar Inc.

(CAT) is the stronger pick with 4. 3% revenue growth year-over-year, versus -2. 2% for Deere & Company (DE). Eagle Materials Inc. (EXP) offers the better valuation at 15. 2x trailing P/E (16. 2x forward), making it the more compelling value choice. Analysts rate Eagle Materials Inc. (EXP) a "Buy" — based on 24 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.

On trailing P/E, Eagle Materials Inc.

(EXP) is the cheapest at 15. 2x versus Caterpillar Inc. at 48. 0x. On forward P/E, Eagle Materials Inc. is actually cheaper at 16. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Eagle Materials Inc. wins at 0. 31x versus Martin Marietta Materials, Inc. 's 3. 03x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Caterpillar Inc.

(CAT) delivered a total return of +291. 3%, compared to +49. 0% for Eagle Materials Inc. (EXP). Over 10 years, the gap is even starker: CAT returned +1203% versus EXP's +193. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Deere & Company (DE) is the lower-risk stock at 0.

56β versus Caterpillar Inc. 's 1. 54β — meaning CAT is approximately 173% more volatile than DE relative to the S&P 500. On balance sheet safety, Martin Marietta Materials, Inc. (MLM) carries a lower debt/equity ratio of 53% versus 2% for Deere & Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Caterpillar Inc.

(CAT) is pulling ahead at 4. 3% versus -2. 2% for Deere & Company (DE). On earnings-per-share growth, the picture is similar: Eagle Materials Inc. grew EPS 1. 2% year-over-year, compared to -42. 0% for Martin Marietta Materials, Inc.. Over a 3-year CAGR, EXP leads at 6. 7% 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.

Eagle Materials Inc.

(EXP) is the more profitable company, earning 20. 5% net margin versus 11. 3% for Deere & Company — meaning it keeps 20. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: EXP leads at 26. 5% 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.

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, Eagle Materials Inc. (EXP) is the more undervalued stock at a PEG of 0. 31x versus Martin Marietta Materials, Inc. 's 3. 03x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Eagle Materials Inc. (EXP) trades at 16. 2x forward P/E versus 39. 2x for Caterpillar Inc. — 22. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DE: 18. 2% to $680. 54.

All stocks in this comparison pay dividends.

Deere & Company (DE) offers the highest yield at 1. 1%, versus 0. 5% for Eagle Materials Inc. (EXP).

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.

56), 1. 1% yield, +659. 4% 10Y return). Both have compounded well over 10 years (DE: +659. 4%, EXP: +193. 9%), 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.

These companies operate in different sectors (EXP (Basic Materials) and CAT (Industrials) and DE (Industrials) and MLM (Basic Materials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: EXP is a small-cap deep-value stock; CAT is a large-cap quality compounder stock; DE is a mid-cap quality compounder stock; MLM is a mid-cap quality compounder stock. CAT, DE, MLM pay a dividend while EXP does not, making them suitable for different income and tax situations. 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.