LHX
L3Harris Technologies, Inc.
Aerospace & Defense
Market Cap$55.07B
5Y Perf.+73.8%
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Side-by-side financial analysisLHX
CAT
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Stock Comparison
LHX vs CAT
Revenue, margins, valuation, and 5-year total return — side by side.
CAT
Caterpillar Inc.
Agricultural - Machinery
Market Cap$458.69B
5Y Perf.+679.3%
LHX vs CAT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot |  LHX |  CAT |
|---|---|---|
| Industry | Aerospace & Defense | Agricultural - Machinery |
| Market Cap | $55.07B | $458.69B |
| Revenue (TTM) | $22.48B | $70.75B |
| Net Income (TTM) | $1.73B | $9.42B |
| Gross Margin | 24.5% | 32.5% |
| Operating Margin | 10.0% | 16.6% |
| Forward P/E | 25.4x | 40.0x |
| Total Debt | $10.44B | $43.33B |
| Cash & Equiv. | $1.07B | $9.98B |
LHX vs CAT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
LHX
CAT
| Stock | Jun 20 | Jun 26 | Return |
|---|---|---|---|
| L3Harris Technologi… (LHX) | 100 | 173.8 | +73.8% |
| Caterpillar Inc. (CAT) | 100 | 779.3 | +679.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: LHX vs CAT
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: CAT leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. L3Harris Technologies, Inc. is the stronger pick specifically for valuation and capital efficiency and capital preservation and lower volatility. As sector peers, any of these can serve as alternatives in the same allocation.
🥇CAT emerged as the overall leader. Track its performance:
LHX
L3Harris Technologies, Inc.
The Income Pick
LHX is the clearest fit if your priority is income & stability and growth exposure.
- Dividend streak 24 yrs, beta 0.38, yield 1.6%
- Rev growth 2.5%, EPS growth 8.4%, 3Y rev CAGR 8.6%
- Lower volatility, beta 0.38, Low D/E 53.2%, current ratio 1.19x
Best for: income & stability and growth exposure
CAT
Caterpillar Inc.
The Long-Run Compounder
CAT carries the broadest edge in this set and is the clearest fit for long-term compounding and valuation efficiency.
- 12.5% 10Y total return vs LHX's 299.1%
- PEG 1.42 vs LHX's 2.42
- 4.3% revenue growth vs LHX's 2.5%
Best for: long-term compounding and valuation efficiency
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth |  CAT | 4.3% revenue growth vs LHX's 2.5% |
| Value |  LHX | Lower P/E (25.4x vs 40.0x) |
| Quality / Margins | CAT | 13.3% margin vs LHX's 7.7% |
| Stability / Safety | LHX | Beta 0.38 vs CAT's 1.64, lower leverage |
| Dividends | LHX | 1.6% yield, 24-year raise streak, vs CAT's 0.6% |
| Momentum (1Y) | CAT | +175.7% vs LHX's +20.5% |
| Efficiency (ROA) | CAT | 10.0% ROA vs LHX's 4.2%, ROIC 15.9% vs 5.4% |
LHX vs CAT — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
LHX vs CAT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLCATLAGGINGLHX
LHXL3Harris Technologies…
1leads
CATCaterpillar Inc.
3leads
6 Total Categories
CATEGORYLEADERvs LHXMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
CAT5/6
Valuation MetricsMultiples, price ratios, and targets
LHX6/7
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
CAT5/9
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 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
CAT is the larger business by revenue, generating $70.8B annually — 3.1x LHX's $22.5B. CAT is the more profitable business, keeping 13.3% of every revenue dollar as net income compared to LHX's 7.7%. On growth, CAT holds the edge at +22.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | LHXL3Harris Technolo… | CATCaterpillar Inc. |
|---|---|---|
| RevenueTrailing 12 months | $22.5B | $70.8B |
| EBITDAEarnings before interest/tax | $3.3B | $14.0B |
| Net IncomeAfter-tax profit | $1.7B | $9.4B |
| Free Cash FlowCash after capex | $2.6B | $11.4B |
| Gross MarginGross profit ÷ Revenue | +24.5% | +32.5% |
| Operating MarginEBIT ÷ Revenue | +10.0% | +16.6% |
| Net MarginNet income ÷ Revenue | +7.7% | +13.3% |
| FCF MarginFCF ÷ Revenue | +11.5% | +16.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +11.9% | +22.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +33.3% | +30.2% |
CAT leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
LHX leads this category, winning 6 of 7 comparable metrics.
Valuation Metrics
At 34.6x trailing earnings, LHX trades at a 34% valuation discount to CAT's 52.4x P/E. Adjusting for growth (PEG ratio), CAT offers better value at 1.86x vs LHX's 3.29x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | LHXL3Harris Technolo… | CATCaterpillar Inc. |
|---|---|---|
| Market CapShares × price | $55.1B | $458.7B |
| Enterprise ValueMkt cap + debt − cash | $64.4B | $492.0B |
| Trailing P/EPrice ÷ TTM EPS | 34.56x | 52.35x |
| Forward P/EPrice ÷ next-FY EPS est. | 25.36x | 39.97x |
| PEG RatioP/E ÷ EPS growth rate | 3.29x | 1.86x |
| EV / EBITDAEnterprise value multiple | 18.85x | 36.52x |
| Price / SalesMarket cap ÷ Revenue | 2.52x | 6.79x |
| Price / BookPrice ÷ Book value/share | 2.83x | 21.69x |
| Price / FCFMarket cap ÷ FCF | 20.53x | 44.65x |
LHX leads this category, winning 6 of 7 comparable metrics.
Profitability & Efficiency
CAT 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 $9 for LHX. LHX carries lower financial leverage with a 0.53x debt-to-equity ratio, signaling a more conservative balance sheet compared to CAT's 2.03x. On the Piotroski fundamental quality scale (0–9), LHX scores 9/9 vs CAT's 5/9, reflecting strong financial health.
| Metric | LHXL3Harris Technolo… | CATCaterpillar Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +8.9% | +47.5% |
| ROA (TTM)Return on assets | +4.2% | +10.0% |
| ROICReturn on invested capital | +5.4% | +15.9% |
| ROCEReturn on capital employed | +6.4% | +19.1% |
| Piotroski ScoreFundamental quality 0–9 | 9 | 5 |
| Debt / EquityFinancial leverage | 0.53x | 2.03x |
| Net DebtTotal debt minus cash | $9.4B | $33.4B |
| Cash & Equiv.Liquid assets | $1.1B | $10.0B |
| Total DebtShort + long-term debt | $10.4B | $43.3B |
| Interest CoverageEBIT ÷ Interest expense | 4.41x | 9.22x |
CAT 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 $48,451 today (with dividends reinvested), compared to $14,523 for LHX. Over the past 12 months, CAT leads with a +175.7% total return vs LHX's +20.5%. The 3-year compound annual growth rate (CAGR) favors CAT at 60.8% vs LHX's 16.5% — a key indicator of consistent wealth creation.
| Metric | LHXL3Harris Technolo… | CATCaterpillar Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -2.4% | +65.2% |
| 1-Year ReturnPast 12 months | +20.5% | +175.7% |
| 3-Year ReturnCumulative with dividends | +58.2% | +315.8% |
| 5-Year ReturnCumulative with dividends | +45.2% | +384.5% |
| 10-Year ReturnCumulative with dividends | +299.1% | +1247.4% |
| CAGR (3Y)Annualised 3-year return | +16.5% | +60.8% |
CAT leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — LHX and CAT each lead in 1 of 2 comparable metrics.
Risk & Volatility
LHX is the less volatile stock with a 0.38 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 LHX's 77.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LHXL3Harris Technolo… | CATCaterpillar Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.38x | 1.64x |
| 52-Week HighHighest price in past year | $379.23 | $994.49 |
| 52-Week LowLowest price in past year | $243.84 | $356.96 |
| % of 52W HighCurrent price vs 52-week peak | +77.7% | +99.1% |
| RSI (14)Momentum oscillator 0–100 | 51.8 | 61.4 |
| Avg Volume (50D)Average daily shares traded | 1.2M | 2.5M |
Evenly matched — LHX and CAT each lead in 1 of 2 comparable metrics.
Analyst Outlook
Evenly matched — LHX and CAT each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates LHX as "Buy" and CAT as "Buy". Consensus price targets imply 17.8% upside for LHX (target: $347) vs -10.5% for CAT (target: $882). For income investors, LHX offers the higher dividend yield at 1.63% vs CAT's 0.59%.
| Metric | LHXL3Harris Technolo… | CATCaterpillar Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $347.33 | $882.20 |
| # AnalystsCovering analysts | 32 | 53 |
| Dividend YieldAnnual dividend ÷ price | +1.6% | +0.6% |
| Dividend StreakConsecutive years of raises | 24 | 32 |
| Dividend / ShareAnnual DPS | $4.79 | $5.86 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.1% | +1.1% |
Evenly matched — LHX and CAT each lead in 1 of 2 comparable metrics.
Key Takeaway
CAT leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). LHX leads in 1 (Valuation Metrics). 2 tied.
Best OverallCaterpillar Inc. (CAT)Leads 3 of 6 categories
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LHX vs CAT: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is LHX or CAT a better buy right now?
For growth investors, Caterpillar Inc.
(CAT) is the stronger pick with 4. 3% revenue growth year-over-year, versus 2. 5% for L3Harris Technologies, Inc. (LHX). L3Harris Technologies, Inc. (LHX) offers the better valuation at 34. 6x trailing P/E (25. 4x forward), making it the more compelling value choice. Analysts rate L3Harris Technologies, Inc. (LHX) a "Buy" — based on 32 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 — LHX or CAT?
On trailing P/E, L3Harris Technologies, Inc.
(LHX) is the cheapest at 34. 6x versus Caterpillar Inc. at 52. 4x. On forward P/E, L3Harris Technologies, Inc. is actually cheaper at 25. 4x. 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 L3Harris Technologies, Inc. 's 2. 42x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — LHX or CAT?
Over the past 5 years, Caterpillar Inc.
(CAT) delivered a total return of +384. 5%, compared to +45. 2% for L3Harris Technologies, Inc. (LHX). Over 10 years, the gap is even starker: CAT returned +1247% versus LHX's +299. 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 — LHX or CAT?
By beta (market sensitivity over 5 years), L3Harris Technologies, Inc.
(LHX) is the lower-risk stock at 0. 38β versus Caterpillar Inc. 's 1. 64β — meaning CAT is approximately 326% more volatile than LHX relative to the S&P 500. On balance sheet safety, L3Harris Technologies, Inc. (LHX) carries a lower debt/equity ratio of 53% versus 2% for Caterpillar Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — LHX or CAT?
By revenue growth (latest reported year), Caterpillar Inc.
(CAT) is pulling ahead at 4. 3% versus 2. 5% for L3Harris Technologies, Inc. (LHX). On earnings-per-share growth, the picture is similar: L3Harris Technologies, Inc. grew EPS 8. 4% year-over-year, compared to -14. 6% for Caterpillar Inc.. Over a 3-year CAGR, LHX leads at 8. 6% 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 — LHX or CAT?
Caterpillar Inc.
(CAT) is the more profitable company, earning 13. 1% net margin versus 7. 3% for L3Harris Technologies, Inc. — meaning it keeps 13. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CAT leads at 16. 6% versus 10. 0% for LHX. At the gross margin level — before operating expenses — CAT leads at 32. 3%, 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 LHX or CAT 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 L3Harris Technologies, Inc. 's 2. 42x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, L3Harris Technologies, Inc. (LHX) trades at 25. 4x forward P/E versus 40. 0x for Caterpillar Inc. — 14. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LHX: 17. 8% to $347. 33.
08Which pays a better dividend — LHX or CAT?
All stocks in this comparison pay dividends.
L3Harris Technologies, Inc. (LHX) offers the highest yield at 1. 6%, versus 0. 6% for Caterpillar Inc. (CAT).
09Is LHX or CAT better for a retirement portfolio?
For long-horizon retirement investors, L3Harris Technologies, Inc.
(LHX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 38), 1. 6% yield, +299. 1% 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 (LHX: +299. 1%, 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 LHX and CAT?
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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