WCN vs CAT vs DE vs WM

For growth investors, Waste Management, Inc.

(WM) is the stronger pick with 14. 2% revenue growth year-over-year, versus -2. 2% for Deere & Company (DE). Deere & Company (DE) offers the better valuation at 31. 4x trailing P/E (32. 5x forward), making it the more compelling value choice. Analysts rate Waste Connections, Inc. (WCN) a "Buy" — based on 33 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, Deere & Company (DE) is the cheapest at 31.

4x versus Caterpillar Inc. at 47. 6x. On forward P/E, Waste Management, Inc. is actually cheaper at 27. 1x — 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: Waste Connections, Inc. wins at 0. 70x versus Deere & Company's 1. 99x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Caterpillar Inc.

(CAT) delivered a total return of +282. 5%, compared to +29. 2% for Waste Connections, Inc. (WCN). Over 10 years, the gap is even starker: CAT returned +1228% versus WCN's +253. 8%. 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), Waste Management, Inc.

(WM) is the lower-risk stock at -0. 17β versus Caterpillar Inc. 's 1. 54β — meaning CAT is approximately -984% more volatile than WM relative to the S&P 500. On balance sheet safety, Waste Connections, Inc. (WCN) carries a lower debt/equity ratio of 114% versus 2% for Deere & Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Waste Management, Inc.

(WM) is pulling ahead at 14. 2% versus -2. 2% for Deere & Company (DE). On earnings-per-share growth, the picture is similar: Waste Connections, Inc. grew EPS 74. 9% year-over-year, compared to -14. 6% for Caterpillar Inc.. Over a 3-year CAGR, WCN leads at 9. 6% 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 10. 7% for Waste Management, Inc. — meaning it keeps 13. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DE leads at 18. 8% versus 16. 6% for CAT. At the gross margin level — before operating expenses — WCN leads at 39. 0%, 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, Waste Connections, Inc. (WCN) is the more undervalued stock at a PEG of 0. 70x versus Deere & Company's 1. 99x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Waste Management, Inc. (WM) trades at 27. 1x forward P/E versus 38. 8x for Caterpillar Inc. — 11. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WCN: 32. 9% to $204. 08.

All stocks in this comparison pay dividends.

Waste Management, Inc. (WM) offers the highest yield at 1. 5%, versus 0. 7% for Caterpillar Inc. (CAT).

For long-horizon retirement investors, Waste Management, Inc.

(WM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0. 17), 1. 5% yield, +301. 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 (WM: +301. 0%, CAT: +1228%), 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.