STN
Stantec Inc.
Engineering & Construction
Market Cap$10.51B
5Y Perf.+203.1%
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Stock Comparison
STN vs CAT
Revenue, margins, valuation, and 5-year total return — side by side.
CAT
Caterpillar Inc.
Agricultural - Machinery
Market Cap$431.16B
5Y Perf.+645.6%
STN vs CAT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | STN | CAT |
|---|---|---|
| Industry | Engineering & Construction | Agricultural - Machinery |
| Market Cap | $10.51B | $431.16B |
| Revenue (TTM) | $7.47B | $70.75B |
| Net Income (TTM) | $448M | $9.42B |
| Gross Margin | 42.3% | 32.5% |
| Operating Margin | 8.8% | 16.6% |
| Forward P/E | 20.2x | 38.8x |
| Total Debt | $2.04B | $43.33B |
| Cash & Equiv. | $229M | $9.98B |
STN vs CAT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
STN
CAT
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Stantec Inc. (STN) | 100 | 303.1 | +203.1% |
| Caterpillar Inc. (CAT) | 100 | 745.6 | +645.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: STN vs CAT
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: STN leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Caterpillar Inc. is the stronger pick specifically for profitability and margin quality and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
STN
Stantec Inc.
The Income Pick
STN carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 13 yrs, beta 1.04, yield 0.7%
- Rev growth 15.7%, EPS growth 6.4%, 3Y rev CAGR 17.9%
- Lower volatility, beta 1.04, Low D/E 69.4%, current ratio 1.29x
Best for: income & stability and growth exposure
CAT
Caterpillar Inc.
The Long-Run Compounder
CAT is the clearest fit if your priority is long-term compounding and valuation efficiency.
- 12.2% 10Y total return vs STN's 282.8%
- PEG 1.38 vs STN's 1.59
- 13.3% margin vs STN's 6.0%
Best for: long-term compounding and valuation efficiency
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | STN | 15.7% revenue growth vs CAT's 4.3% |
| Value | STN | Lower P/E (20.2x vs 38.8x) |
| Quality / Margins | CAT | 13.3% margin vs STN's 6.0% |
| Stability / Safety | STN | Beta 1.04 vs CAT's 1.54, lower leverage |
| Dividends | STN | 0.7% yield, 13-year raise streak, vs CAT's 0.6% |
| Momentum (1Y) | CAT | +190.7% vs STN's +1.5% |
| Efficiency (ROA) | CAT | 10.0% ROA vs STN's 5.5%, ROIC 15.9% vs 10.4% |
STN vs CAT — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2024
FY 2025
STN vs CAT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLCATLAGGINGSTN
STNStantec Inc.
2leads
CATCaterpillar Inc.
3leads
6 Total Categories
CATEGORYLEADERvs STNMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
CAT4/6
Valuation MetricsMultiples, price ratios, and targets
STN6/7
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
STN2/2
Income & Cash Flow (Last 12 Months)
CAT leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
CAT is the larger business by revenue, generating $70.8B annually — 9.5x STN's $7.5B. CAT is the more profitable business, keeping 13.3% of every revenue dollar as net income compared to STN's 6.0%. On growth, CAT holds the edge at +22.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | STNStantec Inc. | CATCaterpillar Inc. |
|---|---|---|
| RevenueTrailing 12 months | $7.5B | $70.8B |
| EBITDAEarnings before interest/tax | $961M | $14.0B |
| Net IncomeAfter-tax profit | $448M | $9.4B |
| Free Cash FlowCash after capex | $805M | $11.4B |
| Gross MarginGross profit ÷ Revenue | +42.3% | +32.5% |
| Operating MarginEBIT ÷ Revenue | +8.8% | +16.6% |
| Net MarginNet income ÷ Revenue | +6.0% | +13.3% |
| FCF MarginFCF ÷ Revenue | +10.8% | +16.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.9% | +22.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +46.7% | +30.2% |
CAT leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
STN leads this category, winning 6 of 7 comparable metrics.
Valuation Metrics
At 39.5x trailing earnings, STN trades at a 20% valuation discount to CAT's 49.2x P/E. Adjusting for growth (PEG ratio), CAT offers better value at 1.75x vs STN's 3.10x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | STNStantec Inc. | CATCaterpillar Inc. |
|---|---|---|
| Market CapShares × price | $10.5B | $431.2B |
| Enterprise ValueMkt cap + debt − cash | $11.8B | $464.5B |
| Trailing P/EPrice ÷ TTM EPS | 39.48x | 49.21x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.24x | 38.79x |
| PEG RatioP/E ÷ EPS growth rate | 3.10x | 1.75x |
| EV / EBITDAEnterprise value multiple | 17.69x | 34.48x |
| Price / SalesMarket cap ÷ Revenue | 1.90x | 6.38x |
| Price / BookPrice ÷ Book value/share | 4.85x | 20.39x |
| Price / FCFMarket cap ÷ FCF | 28.32x | 41.97x |
STN 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 $14 for STN. STN carries lower financial leverage with a 0.69x debt-to-equity ratio, signaling a more conservative balance sheet compared to CAT's 2.03x. On the Piotroski fundamental quality scale (0–9), STN scores 6/9 vs CAT's 5/9, reflecting solid financial health.
| Metric | STNStantec Inc. | CATCaterpillar Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +13.9% | +47.5% |
| ROA (TTM)Return on assets | +5.5% | +10.0% |
| ROICReturn on invested capital | +10.4% | +15.9% |
| ROCEReturn on capital employed | +13.0% | +19.1% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.69x | 2.03x |
| Net DebtTotal debt minus cash | $1.8B | $33.4B |
| Cash & Equiv.Liquid assets | $229M | $10.0B |
| Total DebtShort + long-term debt | $2.0B | $43.3B |
| Interest CoverageEBIT ÷ Interest expense | 7.18x | 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 $40,189 today (with dividends reinvested), compared to $21,295 for STN. Over the past 12 months, CAT leads with a +190.7% total return vs STN's +1.5%. The 3-year compound annual growth rate (CAGR) favors CAT at 63.8% vs STN's 15.4% — a key indicator of consistent wealth creation.
| Metric | STNStantec Inc. | CATCaterpillar Inc. |
|---|---|---|
| YTD ReturnYear-to-date | -4.1% | +55.4% |
| 1-Year ReturnPast 12 months | +1.5% | +190.7% |
| 3-Year ReturnCumulative with dividends | +53.8% | +339.3% |
| 5-Year ReturnCumulative with dividends | +113.0% | +301.9% |
| 10-Year ReturnCumulative with dividends | +282.8% | +1223.1% |
| CAGR (3Y)Annualised 3-year return | +15.4% | +63.8% |
CAT leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — STN and CAT each lead in 1 of 2 comparable metrics.
Risk & Volatility
STN is the less volatile stock with a 1.04 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 99.6% from its 52-week high vs STN's 80.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | STNStantec Inc. | CATCaterpillar Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.04x | 1.54x |
| 52-Week HighHighest price in past year | $114.52 | $930.41 |
| 52-Week LowLowest price in past year | $84.08 | $318.11 |
| % of 52W HighCurrent price vs 52-week peak | +80.4% | +99.6% |
| RSI (14)Momentum oscillator 0–100 | 57.9 | 73.7 |
| Avg Volume (50D)Average daily shares traded | 257K | 2.4M |
Evenly matched — STN and CAT each lead in 1 of 2 comparable metrics.
Analyst Outlook
STN leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates STN as "Hold" and CAT as "Buy". Consensus price targets imply -11.0% upside for CAT (target: $825) vs -32.6% for STN (target: $62). For income investors, STN offers the higher dividend yield at 0.66% vs CAT's 0.63%.
| Metric | STNStantec Inc. | CATCaterpillar Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $62.07 | $824.80 |
| # AnalystsCovering analysts | 18 | 53 |
| Dividend YieldAnnual dividend ÷ price | +0.7% | +0.6% |
| Dividend StreakConsecutive years of raises | 13 | 8 |
| Dividend / ShareAnnual DPS | $0.82 | $5.86 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +1.2% |
STN leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
CAT leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). STN leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
Best OverallCaterpillar Inc. (CAT)Leads 3 of 6 categories
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STN vs CAT: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is STN or CAT a better buy right now?
For growth investors, Stantec Inc.
(STN) is the stronger pick with 15. 7% revenue growth year-over-year, versus 4. 3% for Caterpillar Inc. (CAT). Stantec Inc. (STN) offers the better valuation at 39. 5x trailing P/E (20. 2x 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 — STN or CAT?
On trailing P/E, Stantec Inc.
(STN) is the cheapest at 39. 5x versus Caterpillar Inc. at 49. 2x. On forward P/E, Stantec Inc. is actually cheaper at 20. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Caterpillar Inc. wins at 1. 38x versus Stantec Inc. 's 1. 59x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — STN or CAT?
Over the past 5 years, Caterpillar Inc.
(CAT) delivered a total return of +301. 9%, compared to +113. 0% for Stantec Inc. (STN). Over 10 years, the gap is even starker: CAT returned +1228% versus STN's +283. 5%. 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 — STN or CAT?
By beta (market sensitivity over 5 years), Stantec Inc.
(STN) is the lower-risk stock at 1. 04β versus Caterpillar Inc. 's 1. 54β — meaning CAT is approximately 48% more volatile than STN relative to the S&P 500. On balance sheet safety, Stantec Inc. (STN) carries a lower debt/equity ratio of 69% versus 2% for Caterpillar Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — STN or CAT?
By revenue growth (latest reported year), Stantec Inc.
(STN) is pulling ahead at 15. 7% versus 4. 3% for Caterpillar Inc. (CAT). On earnings-per-share growth, the picture is similar: Stantec Inc. grew EPS 6. 4% year-over-year, compared to -14. 6% for Caterpillar Inc.. Over a 3-year CAGR, STN leads at 17. 9% 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 — STN or CAT?
Caterpillar Inc.
(CAT) is the more profitable company, earning 13. 1% net margin versus 4. 8% for Stantec 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 7. 9% for STN. At the gross margin level — before operating expenses — STN leads at 42. 6%, 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 STN 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. 38x versus Stantec Inc. 's 1. 59x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Stantec Inc. (STN) trades at 20. 2x forward P/E versus 38. 8x for Caterpillar Inc. — 18. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CAT: -11. 0% to $824. 80.
08Which pays a better dividend — STN or CAT?
All stocks in this comparison pay dividends.
Stantec Inc. (STN) offers the highest yield at 0. 7%, versus 0. 6% for Caterpillar Inc. (CAT).
09Is STN or CAT 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, +1228% 10Y return). Both have compounded well over 10 years (CAT: +1228%, STN: +283. 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 STN 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.
In terms of investment character: STN 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.
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Revenue Growth>
%
(STN: 10.9% · CAT: 22.2%)Net Margin>
%
(STN: 6.0% · CAT: 13.3%)P/E Ratio<
x
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