USAC vs CAT vs CMI vs ETN

For growth investors, Eaton Corporation plc (ETN) is the stronger pick with 10.

3% revenue growth year-over-year, versus -1. 3% for Cummins Inc. (CMI). USA Compression Partners, LP (USAC) offers the better valuation at 32. 5x trailing P/E (19. 8x 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 32.

5x versus Caterpillar Inc. at 47. 6x. On forward P/E, USA Compression Partners, LP is actually cheaper at 19. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Eaton Corporation plc wins at 1. 22x versus Cummins Inc. 's 2. 30x — a reasonable growth-adjusted valuation.

Over the past 5 years, Caterpillar Inc.

(CAT) delivered a total return of +282. 5%, compared to +147. 8% for USA Compression Partners, LP (USAC). Over 10 years, the gap is even starker: CAT returned +1228% versus USAC's +250. 5%. 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 Cummins Inc. 's 1. 57β — meaning CMI is approximately 316% more volatile than USAC relative to the S&P 500. On balance sheet safety, Eaton Corporation plc (ETN) carries a lower debt/equity ratio of 57% versus 2% for Caterpillar Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Eaton Corporation plc (ETN) is pulling ahead at 10.

3% versus -1. 3% for Cummins Inc. (CMI). On earnings-per-share growth, the picture is similar: USA Compression Partners, LP grew EPS 18. 1% year-over-year, compared to -27. 7% for Cummins 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.

Eaton Corporation plc (ETN) is the more profitable company, earning 14.

9% net margin versus 8. 4% for Cummins Inc. — meaning it keeps 14. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: USAC leads at 31. 9% versus 11. 5% for CMI. 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.

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, Eaton Corporation plc (ETN) is the more undervalued stock at a PEG of 1. 22x versus Cummins Inc. 's 2. 30x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, USA Compression Partners, LP (USAC) trades at 19. 8x forward P/E versus 38. 8x for Caterpillar Inc. — 19. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for USAC: -0. 4% to $27. 50.

All stocks in this comparison pay dividends.

USA Compression Partners, LP (USAC) offers the highest yield at 7. 6%, versus 0. 7% 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. 6% yield, +250. 5% 10Y return). Cummins Inc. (CMI) carries a higher beta of 1. 57 — 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: +250. 5%, CMI: +557. 4%), 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) and CMI (Industrials) and ETN (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; CMI is a mid-cap quality compounder stock; ETN is a mid-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.