RBA vs CAT

For growth investors, RB Global, Inc.

(RBA) is the stronger pick with 9. 0% revenue growth year-over-year, versus 4. 3% for Caterpillar Inc. (CAT). Caterpillar Inc. (CAT) offers the better valuation at 49. 2x trailing P/E (40. 1x forward), making it the more compelling value choice. Analysts rate RB Global, Inc. (RBA) a "Buy" — based on 23 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, Caterpillar Inc.

(CAT) is the cheapest at 49. 2x versus RB Global, Inc. at 50. 9x. On forward P/E, RB Global, Inc. is actually cheaper at 24. 2x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Caterpillar Inc. wins at 1. 43x versus RB Global, Inc. 's 3. 91x — a reasonable growth-adjusted valuation.

Over the past 5 years, Caterpillar Inc.

(CAT) delivered a total return of +301. 9%, compared to +70. 2% for RB Global, Inc. (RBA). Over 10 years, the gap is even starker: CAT returned +1223% versus RBA's +298. 4%. 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), RB Global, Inc.

(RBA) is the lower-risk stock at 0. 68β versus Caterpillar Inc. 's 1. 54β — meaning CAT is approximately 126% more volatile than RBA relative to the S&P 500. On balance sheet safety, RB Global, Inc. (RBA) carries a lower debt/equity ratio of 91% versus 2% for Caterpillar Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), RB Global, Inc.

(RBA) is pulling ahead at 9. 0% versus 4. 3% for Caterpillar Inc. (CAT). On earnings-per-share growth, the picture is similar: RB Global, Inc. grew EPS 3. 5% year-over-year, compared to -14. 6% for Caterpillar Inc.. Over a 3-year CAGR, RBA leads at 39. 1% 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.

Caterpillar Inc.

(CAT) is the more profitable company, earning 13. 1% net margin versus 9. 3% for RB Global, Inc. — meaning it keeps 13. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RBA leads at 17. 7% versus 16. 6% for CAT. At the gross margin level — before operating expenses — RBA leads at 35. 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, Caterpillar Inc. (CAT) is the more undervalued stock at a PEG of 1. 43x versus RB Global, Inc. 's 3. 91x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, RB Global, Inc. (RBA) trades at 24. 2x forward P/E versus 40. 1x for Caterpillar Inc. — 15. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RBA: 17. 1% to $124. 00.

All stocks in this comparison pay dividends.

RB Global, Inc. (RBA) offers the highest yield at 1. 1%, versus 0. 6% for Caterpillar Inc. (CAT).

For long-horizon retirement investors, RB Global, Inc.

(RBA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 68), 1. 1% yield, +298. 4% 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 (RBA: +298. 4%, CAT: +1223%), 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.

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.