TRNS
Transcat, Inc.
Industrial - Distribution
Market Cap$852M
5Y Perf.+252.9%
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Side-by-side financial analysisTRNS
CAT
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Stock Comparison
TRNS vs CAT
Revenue, margins, valuation, and 5-year total return — side by side.
CAT
Caterpillar Inc.
Agricultural - Machinery
Market Cap$423.68B
5Y Perf.+619.8%
TRNS vs CAT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot |  TRNS |  CAT |
|---|---|---|
| Industry | Industrial - Distribution | Agricultural - Machinery |
| Market Cap | $852M | $423.68B |
| Revenue (TTM) | $333M | $70.75B |
| Net Income (TTM) | $7M | $9.42B |
| Gross Margin | 32.6% | 32.5% |
| Operating Margin | 4.1% | 16.6% |
| Forward P/E | 51.9x | 36.9x |
| Total Debt | $129M | $43.33B |
| Cash & Equiv. | $5M | $9.98B |
TRNS vs CAT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
TRNS
CAT
| Stock | Jun 20 | Jun 26 | Return |
|---|---|---|---|
| Transcat, Inc. (TRNS) | 100 | 352.9 | +252.9% |
| Caterpillar Inc. (CAT) | 100 | 719.8 | +619.8% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TRNS vs CAT
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: CAT leads in 5 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. Transcat, Inc. is the stronger pick specifically for growth and revenue expansion 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:
TRNS
Transcat, Inc.
The Income Pick
TRNS is the clearest fit if your priority is income & stability and growth exposure.
- Dividend streak 0 yrs, beta 1.35
- Rev growth 19.2%, EPS growth -63.7%, 3Y rev CAGR 12.9%
- Lower volatility, beta 1.35, Low D/E 42.9%, current ratio 2.33x
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.
- 11.7% 10Y total return vs TRNS's 7.7%
- Lower P/E (36.9x vs 51.9x)
- 13.3% margin vs TRNS's 2.0%
Best for: long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth |  TRNS | 19.2% revenue growth vs CAT's 4.3% |
| Value |  CAT | Lower P/E (36.9x vs 51.9x) |
| Quality / Margins | CAT | 13.3% margin vs TRNS's 2.0% |
| Stability / Safety | TRNS | Beta 1.35 vs CAT's 1.67, lower leverage |
| Dividends | CAT | 0.6% yield; 32-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | CAT | +153.9% vs TRNS's +17.9% |
| Efficiency (ROA) | CAT | 10.0% ROA vs TRNS's 1.4%, ROIC 15.9% vs 2.6% |
TRNS vs CAT — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
TRNS vs CAT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLCATLAGGINGTRNS
TRNSTranscat, Inc.
1leads
CATCaterpillar Inc.
4leads
6 Total Categories
CATEGORYLEADERvs TRNSMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
CAT5/6
Valuation MetricsMultiples, price ratios, and targets
Tied
—
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
CAT5/8
Total Returns1Y, 3Y, 5Y total returns with dividends
CAT5/6
Risk & VolatilityBeta, volatility, and downside exposure
TRNS2/2
Analyst OutlookRatings, price targets, and dividends
CAT1/1
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 — 212.7x TRNS's $333M. CAT is the more profitable business, keeping 13.3% of every revenue dollar as net income compared to TRNS's 2.0%. On growth, CAT holds the edge at +22.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TRNSTranscat, Inc. | CATCaterpillar Inc. |
|---|---|---|
| RevenueTrailing 12 months | $333M | $70.8B |
| EBITDAEarnings before interest/tax | $40M | $14.0B |
| Net IncomeAfter-tax profit | $7M | $9.4B |
| Free Cash FlowCash after capex | $20M | $11.4B |
| Gross MarginGross profit ÷ Revenue | +32.6% | +32.5% |
| Operating MarginEBIT ÷ Revenue | +4.1% | +16.6% |
| Net MarginNet income ÷ Revenue | +2.0% | +13.3% |
| FCF MarginFCF ÷ Revenue | +5.9% | +16.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +15.8% | +22.2% |
| EPS Growth (YoY)Latest quarter vs prior year | -56.3% | +30.2% |
CAT leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
Evenly matched — TRNS and CAT each lead in 3 of 6 comparable metrics.
Valuation Metrics
At 48.4x trailing earnings, CAT trades at a 70% valuation discount to TRNS's 160.1x P/E. On an enterprise value basis, TRNS's 24.8x EV/EBITDA is more attractive than CAT's 33.9x.
| Metric | TRNSTranscat, Inc. | CATCaterpillar Inc. |
|---|---|---|
| Market CapShares × price | $852M | $423.7B |
| Enterprise ValueMkt cap + debt − cash | $976M | $457.0B |
| Trailing P/EPrice ÷ TTM EPS | 160.11x | 48.36x |
| Forward P/EPrice ÷ next-FY EPS est. | 51.85x | 36.94x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.72x |
| EV / EBITDAEnterprise value multiple | 24.76x | 33.92x |
| Price / SalesMarket cap ÷ Revenue | 2.57x | 6.27x |
| Price / BookPrice ÷ Book value/share | 2.83x | 20.03x |
| Price / FCFMarket cap ÷ FCF | 43.60x | 41.24x |
Evenly matched — TRNS and CAT each lead in 3 of 6 comparable metrics.
Profitability & Efficiency
CAT leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
CAT delivers a 47.5% return on equity — every $100 of shareholder capital generates $48 in annual profit, vs $2 for TRNS. TRNS carries lower financial leverage with a 0.43x debt-to-equity ratio, signaling a more conservative balance sheet compared to CAT's 2.03x.
| Metric | TRNSTranscat, Inc. | CATCaterpillar Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +2.2% | +47.5% |
| ROA (TTM)Return on assets | +1.4% | +10.0% |
| ROICReturn on invested capital | +2.6% | +15.9% |
| ROCEReturn on capital employed | +3.3% | +19.1% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 0.43x | 2.03x |
| Net DebtTotal debt minus cash | $124M | $33.4B |
| Cash & Equiv.Liquid assets | $5M | $10.0B |
| Total DebtShort + long-term debt | $129M | $43.3B |
| Interest CoverageEBIT ÷ Interest expense | 2.81x | 9.22x |
CAT leads this category, winning 5 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
CAT leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in CAT five years ago would be worth $42,769 today (with dividends reinvested), compared to $16,632 for TRNS. Over the past 12 months, CAT leads with a +153.9% total return vs TRNS's +17.9%. The 3-year compound annual growth rate (CAGR) favors CAT at 57.4% vs TRNS's -0.3% — a key indicator of consistent wealth creation.
| Metric | TRNSTranscat, Inc. | CATCaterpillar Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +59.7% | +52.7% |
| 1-Year ReturnPast 12 months | +17.9% | +153.9% |
| 3-Year ReturnCumulative with dividends | -1.0% | +289.8% |
| 5-Year ReturnCumulative with dividends | +66.3% | +327.7% |
| 10-Year ReturnCumulative with dividends | +769.1% | +1168.9% |
| CAGR (3Y)Annualised 3-year return | -0.3% | +57.4% |
CAT leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
TRNS leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
TRNS is the less volatile stock with a 1.35 beta — it tends to amplify market swings less than CAT's 1.67 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | TRNSTranscat, Inc. | CATCaterpillar Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.35x | 1.67x |
| 52-Week HighHighest price in past year | $94.76 | $946.83 |
| 52-Week LowLowest price in past year | $50.23 | $355.70 |
| % of 52W HighCurrent price vs 52-week peak | +96.3% | +96.2% |
| RSI (14)Momentum oscillator 0–100 | 62.7 | 52.5 |
| Avg Volume (50D)Average daily shares traded | 155K | 2.4M |
TRNS leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
CAT leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates TRNS as "Buy" and CAT as "Buy". Consensus price targets imply 35.4% upside for TRNS (target: $124) vs -3.1% for CAT (target: $882). CAT is the only dividend payer here at 0.64% yield — a key consideration for income-focused portfolios.
| Metric | TRNSTranscat, Inc. | CATCaterpillar Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $123.60 | $882.20 |
| # AnalystsCovering analysts | 10 | 53 |
| Dividend YieldAnnual dividend ÷ price | — | +0.6% |
| Dividend StreakConsecutive years of raises | 0 | 32 |
| Dividend / ShareAnnual DPS | — | $5.86 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +1.2% |
CAT leads this category, winning 1 of 1 comparable metric.
Key Takeaway
CAT leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). TRNS leads in 1 (Risk & Volatility). 1 tied.
Best OverallCaterpillar Inc. (CAT)Leads 4 of 6 categories
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TRNS vs CAT: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TRNS or CAT a better buy right now?
For growth investors, Transcat, Inc.
(TRNS) is the stronger pick with 19. 2% revenue growth year-over-year, versus 4. 3% for Caterpillar Inc. (CAT). Caterpillar Inc. (CAT) offers the better valuation at 48. 4x trailing P/E (36. 9x forward), making it the more compelling value choice. Analysts rate Transcat, Inc. (TRNS) a "Buy" — based on 10 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 — TRNS or CAT?
On trailing P/E, Caterpillar Inc.
(CAT) is the cheapest at 48. 4x versus Transcat, Inc. at 160. 1x. On forward P/E, Caterpillar Inc. is actually cheaper at 36. 9x.
03Which is the better long-term investment — TRNS or CAT?
Over the past 5 years, Caterpillar Inc.
(CAT) delivered a total return of +327. 7%, compared to +66. 3% for Transcat, Inc. (TRNS). Over 10 years, the gap is even starker: CAT returned +1169% versus TRNS's +769. 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 — TRNS or CAT?
By beta (market sensitivity over 5 years), Transcat, Inc.
(TRNS) is the lower-risk stock at 1. 35β versus Caterpillar Inc. 's 1. 67β — meaning CAT is approximately 23% more volatile than TRNS relative to the S&P 500. On balance sheet safety, Transcat, Inc. (TRNS) carries a lower debt/equity ratio of 43% versus 2% for Caterpillar Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — TRNS or CAT?
By revenue growth (latest reported year), Transcat, Inc.
(TRNS) is pulling ahead at 19. 2% versus 4. 3% for Caterpillar Inc. (CAT). On earnings-per-share growth, the picture is similar: Caterpillar Inc. grew EPS -14. 6% year-over-year, compared to -63. 7% for Transcat, Inc.. Over a 3-year CAGR, TRNS leads at 12. 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 — TRNS or CAT?
Caterpillar Inc.
(CAT) is the more profitable company, earning 13. 1% net margin versus 1. 6% for Transcat, 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 4. 0% for TRNS. At the gross margin level — before operating expenses — TRNS leads at 32. 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 TRNS or CAT more undervalued right now?
On forward earnings alone, Caterpillar Inc.
(CAT) trades at 36. 9x forward P/E versus 51. 9x for Transcat, Inc. — 14. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TRNS: 35. 4% to $123. 60.
08Which pays a better dividend — TRNS or CAT?
In this comparison, CAT (0.
6% yield) pays a dividend. TRNS does not pay a meaningful dividend and should not be held primarily for income.
09Is TRNS 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, +1169% 10Y return). Both have compounded well over 10 years (CAT: +1169%, TRNS: +769. 1%), 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 TRNS 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: TRNS is a small-cap high-growth stock; CAT is a large-cap quality compounder stock. CAT pays a dividend while TRNS 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.
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