NEM vs CAT

For growth investors, Newmont Corporation (NEM) is the stronger pick with 19.

1% revenue growth year-over-year, versus 4. 3% for Caterpillar Inc. (CAT). Newmont Corporation (NEM) offers the better valuation at 17. 0x trailing P/E (10. 5x forward), making it the more compelling value choice. Analysts rate Newmont Corporation (NEM) a "Buy" — based on 36 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, Newmont Corporation (NEM) is the cheapest at 17.

0x versus Caterpillar Inc. at 48. 0x. On forward P/E, Newmont Corporation is actually cheaper at 10. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Newmont Corporation wins at 0. 82x versus Caterpillar Inc. 's 1. 39x — 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 +80. 0% for Newmont Corporation (NEM). Over 10 years, the gap is even starker: CAT returned +1203% versus NEM's +267. 2%. 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), Newmont Corporation (NEM) is the lower-risk stock at 0.

75β versus Caterpillar Inc. 's 1. 54β — meaning CAT is approximately 105% more volatile than NEM relative to the S&P 500. On balance sheet safety, Newmont Corporation (NEM) carries a lower debt/equity ratio of 1% versus 2% for Caterpillar Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Newmont Corporation (NEM) is pulling ahead at 19.

1% versus 4. 3% for Caterpillar Inc. (CAT). On earnings-per-share growth, the picture is similar: Newmont Corporation grew EPS 124. 1% year-over-year, compared to -14. 6% for Caterpillar Inc.. Over a 3-year CAGR, NEM leads at 22. 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.

Newmont Corporation (NEM) is the more profitable company, earning 32.

1% net margin versus 13. 1% for Caterpillar Inc. — meaning it keeps 32. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NEM leads at 46. 9% versus 16. 6% for CAT. At the gross margin level — before operating expenses — NEM leads at 49. 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.

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, Newmont Corporation (NEM) is the more undervalued stock at a PEG of 0. 82x versus Caterpillar Inc. 's 1. 39x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Newmont Corporation (NEM) trades at 10. 5x forward P/E versus 39. 2x for Caterpillar Inc. — 28. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NEM: 26. 1% to $137. 50.

All stocks in this comparison pay dividends.

Newmont Corporation (NEM) offers the highest yield at 0. 9%, versus 0. 6% for Caterpillar Inc. (CAT).

For long-horizon retirement investors, Newmont Corporation (NEM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

75), 0. 9% yield, +267. 2% 10Y return). Caterpillar Inc. (CAT) carries a higher beta of 1. 54 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (NEM: +267. 2%, CAT: +1203%), 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 (NEM (Basic Materials) and CAT (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: NEM is a mid-cap high-growth stock; CAT is a large-cap quality compounder stock. 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.