USAC vs CAT

For growth investors, USA Compression Partners, LP (USAC) is the stronger pick with 5.

0% revenue growth year-over-year, versus 4. 3% for Caterpillar Inc. (CAT). USA Compression Partners, LP (USAC) offers the better valuation at 31. 8x trailing P/E (19. 4x forward), making it the more compelling value choice. Analysts rate USA Compression Partners, LP (USAC) a "Buy" — based on 19 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, USA Compression Partners, LP (USAC) is the cheapest at 31.

8x versus Caterpillar Inc. at 49. 2x. On forward P/E, USA Compression Partners, LP is actually cheaper at 19. 4x.

Over the past 5 years, Caterpillar Inc.

(CAT) delivered a total return of +301. 9%, compared to +146. 5% for USA Compression Partners, LP (USAC). Over 10 years, the gap is even starker: CAT returned +1223% versus USAC's +235. 0%. 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), USA Compression Partners, LP (USAC) is the lower-risk stock at 0.

38β versus Caterpillar Inc. 's 1. 54β — meaning CAT is approximately 308% more volatile than USAC relative to the S&P 500.

By revenue growth (latest reported year), USA Compression Partners, LP (USAC) is pulling ahead at 5.

0% versus 4. 3% for Caterpillar Inc. (CAT). On earnings-per-share growth, the picture is similar: USA Compression Partners, LP grew EPS 18. 1% year-over-year, compared to -14. 6% for Caterpillar Inc.. Over a 3-year CAGR, USAC leads at 12. 3% 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 11. 2% for USA Compression Partners, LP — meaning it keeps 13. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: USAC leads at 31. 9% versus 16. 6% for CAT. At the gross margin level — before operating expenses — USAC leads at 38. 5%, 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.

On forward earnings alone, USA Compression Partners, LP (USAC) trades at 19.

4x forward P/E versus 40. 1x for Caterpillar Inc. — 20. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for USAC: 1. 9% to $27. 50.

All stocks in this comparison pay dividends.

USA Compression Partners, LP (USAC) offers the highest yield at 7. 8%, versus 0. 6% for Caterpillar Inc. (CAT).

For long-horizon retirement investors, USA Compression Partners, LP (USAC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

38), 7. 8% yield, +235. 0% 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 (USAC: +235. 0%, 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.

These companies operate in different sectors (USAC (Energy) and CAT (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: USAC is a small-cap income-oriented 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.