CAT
Caterpillar Inc.
CAT has the edge over EMR overall, supported by stronger modeled upside and stronger valuation.
EMR
Emerson Electric Co.
EMR's outlook is improving, though it still trails on the overall score.
CAT Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Strong | |
| Strong |
CAT's revenue, profitability, cash flow and balance sheet are all currently healthy.
EMR Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Healthy | |
| Strong | |
| Stable |
EMR's profitability and cash flow are currently healthy, and its revenue and balance sheet are stable.
CAT PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 15x | $380 | -37% |
| Fair | 18x | $461 | -24% |
| Forward | 20x | $605 | — |
| Current | 24x | $605 | — |
| Expensive | 33x | $840 | +39% |
Historical ranges are pointers, not guarantees.
CAT has the edge over EMR in the historical PE scenario, which offers more potential upside but is not a forecast.
EMR PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 10x | $49.84 | -70% |
| Fair | 22x | $107 | -36% |
| Forward | 23x | $167 | — |
| Expensive | 33x | $160 | -4.2% |
| Current | 35x | $167 | — |
Historical ranges are pointers, not guarantees.
EMR's PE is in its expensive range at 35x. If earnings grow as analysts expect, today's price would be 23x next year's earnings, in its fair range.
CAT Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Strong growth | |
| Growth | |
| Strongly improving | |
| Moderate | |
| Low |
Analysts expect earnings and revenue growth for CAT, with profitability improving. However, they disagree widely on these estimates.
EMR Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Growth | |
| Growth | |
| Improving | |
| Moderate | |
| High |
Analysts expect earnings and revenue growth for EMR, with profitability improving.
CAT Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $30.32 | +19% |
| Q3 2026 | $25.48 | +31% |
| Q2 2026 | $23.23 | +18% |
| Q1 2026 | $20.08 | -2% |
| Q4 2025 | $18.81 | -15% |
| Q3 2025 | $19.46 | -9.7% |
| Q2 2025 | $19.64 | -10% |
| Q1 2025 | $20.50 | -7.4% |
| Q4 2024 | $22.05 | +9.6% |
CAT earned $25.48 per share over the past year, up 31% from the year before.
EMR Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $7.30 | +53% |
| Q3 2026 | $4.78 | +18% |
| Q2 2026 | $4.57 | -1.7% |
| Q1 2026 | $4.33 | +3.6% |
| Q4 2025 | $4.09 | -2.4% |
| Q3 2025 | $4.04 | +18% |
| Q2 2025 | $4.65 | +56% |
| Q1 2025 | $4.18 | -78% |
| Q4 2024 | $4.19 | -78% |
EMR has the edge over CAT on earnings, with more consistent year-over-year improvement.
CAT Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $20.7B | +17% |
| Q2 2026 | $20.5B | +24% |
| Q1 2026 | $17.4B | +22% |
| Q4 2025 | $19.1B | +18% |
| Q3 2025 | $17.6B | +9.5% |
| Q2 2025 | $16.6B | -0.7% |
| Q1 2025 | $14.2B | -9.8% |
| Q4 2024 | $16.2B | -5% |
CAT's revenue has grown year over year for five quarters in a row: $20.7B last quarter, up 17% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 20% | +3.1 points |
| Q2 2026 | 21% | +3.6 points |
| Q1 2026 | 18% | -0.4 points |
| Q4 2025 | 14% | -4.1 points |
| Q3 2025 | 17% | -2.2 points |
| Q2 2025 | 17% | -3.6 points |
| Q1 2025 | 18% | -4.2 points |
| Q4 2024 | 18% | -0.3 points |
CAT has the edge over EMR on profitability, with a higher operating margin.
EMR Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $5.2B | +7.1% |
| Q2 2026 | $4.9B | +7% |
| Q1 2026 | $4.6B | +2.9% |
| Q4 2025 | $4.3B | +4.1% |
| Q3 2025 | $4.9B | +5.1% |
| Q2 2025 | $4.6B | +3.9% |
| Q1 2025 | $4.4B | +1.3% |
| Q4 2024 | $4.2B | +1.4% |
EMR's revenue has grown year over year for 12 quarters in a row: $5.2B last quarter, up 7.1% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 19% | +2.9 points |
| Q2 2026 | 19% | +2.7 points |
| Q1 2026 | 17% | +3.2 points |
| Q4 2025 | 18% | -0.7 points |
| Q3 2025 | 16% | +1.7 points |
| Q2 2025 | 16% | +5.7 points |
| Q1 2025 | 14% | -0.7 points |
| Q4 2024 | 19% | +15 points |
EMR's operating margin was 19% last quarter, up 2.9 points from the same quarter a year ago.
CAT Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $3.7B | +19% |
| Q2 2026 | $3.8B | +47% |
| Q1 2026 | $1.1B | +97% |
| Q4 2025 | $2.7B | +0.1% |
| Q3 2025 | $3.1B | -1.5% |
| Q2 2025 | $2.6B | -4.2% |
| Q1 2025 | $579M | -63% |
| Q4 2024 | $2.7B | -22% |
CAT generated $11.3B in free cash flow over the past year, up 26% from the year before.
EMR Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $917M | +8.9% |
| Q2 2026 | $1.3B | +35% |
| Q1 2026 | $694M | +351% |
| Q4 2025 | $602M | -13% |
| Q3 2025 | $842M | -8.1% |
| Q2 2025 | $977M | -2.1% |
| Q1 2025 | $154M | -77% |
| Q4 2024 | $694M | +105% |
EMR has the edge over CAT on cash flow, with stronger typical year-over-year growth.
CAT Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.3% | -1.6M shares |
| 1 year | -2.1% | -9.9M shares |
| 3 years | -10% | -51.7M shares |
| 5 years | -16% | -86.7M shares |
| Available history | -19% | -107M shares |
CAT has the edge over EMR on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q3 2026 | $1.2B |
| Q2 2026 | $1.5B |
| Q1 2026 | $5B |
| Q4 2025 | $340M |
| Q3 2025 | $362M |
| Q2 2025 | $828M |
| Q1 2025 | $3.7B |
| Q4 2024 | $640M |
CAT spent $8.1B buying back its own shares over the past year, up 47% from the year before.
EMR Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.2% | +900K shares |
| 1 year | -0.8% | -4.7M shares |
| 3 years | -2.7% | -15.3M shares |
| 5 years | -6.6% | -39.8M shares |
| Available history | -8.5% | -52.1M shares |
EMR has 562M diluted shares, down 0.8% from a year ago, with $1B in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $102M |
| Q2 2026 | $356M |
| Q1 2026 | $292M |
| Q4 2025 | $250M |
| Q3 2025 | $20M |
| Q2 2025 | $25M |
| Q1 2025 | $223M |
| Q4 2024 | $899M |
EMR spent $1B buying back its own shares over the past year, down 14% from the year before.
CAT Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -0.5x | Net Cash |
| Q2 2026 | -0.4x | Net Cash |
| Q1 2026 | -0.3x | Net Cash |
| Q4 2025 | 2.0x | Healthy |
| Q3 2025 | -0.6x | Net Cash |
| Q2 2025 | -0.4x | Net Cash |
| Q1 2025 | -0.3x | Net Cash |
| Q4 2024 | 1.6x | Healthy |
CAT has the edge over EMR on leverage, with a lower net debt burden relative to earnings.
EMR Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 2.1x | Moderate |
| Q2 2026 | 2.3x | Moderate |
| Q1 2026 | 2.5x | Moderate |
| Q4 2025 | 2.6x | Moderate |
| Q3 2025 | 2.6x | Moderate |
| Q2 2025 | 2.7x | Moderate |
| Q1 2025 | 3.0x | Elevated |
| Q4 2024 | 1.1x | Healthy |
EMR's net debt is about 2.1 years of its operating earnings (EBITDA), down from 2.6 years a year ago.
CAT Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 32.7 | Neutral |
| Stochastic | 6.7 | Oversold |
CAT's weekly RSI is 33 (neutral) and its Stochastic is 7 (oversold).
EMR Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 64.0 | Neutral |
| Stochastic | 74.4 | Neutral |
EMR's weekly RSI is 64 (neutral) and its Stochastic is 74 (neutral).
CAT PE vs Industrials Sector
| Metric | CAT | Sector median | Relative |
|---|---|---|---|
| PE | 24x | 24x | 1.3% below |
| PE % | 69 | 58 | 11 pts above |
CAT has the edge over EMR on valuation relative to its sector.
EMR PE vs Industrials Sector
| Metric | EMR | Sector median | Relative |
|---|---|---|---|
| PE | 35x | 24x | 45% above |
| PE % | 89 | 58 | 31 pts above |
EMR is trading at 35x earnings, a 45% premium to the Industrials sector's median of 24x.
CAT Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $709.0 | 15% below |
| 20 week MA | $797.0 | 24% below |
| 50 week MA | $771.3 | 22% below |
| 100 week MA | $586.7 | 3.2% above |
| 200 week MA | $443.1 | 37% above |
CAT has pulled back, but its long-term trend is still up: it's below its 8-, 20- and 50-week averages, but 37% above its 200-week average.
EMR Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $162.4 | 2.8% above |
| 20 week MA | $155.2 | 7.6% above |
| 50 week MA | $146.6 | 14% above |
| 100 week MA | $135.9 | 23% above |
| 200 week MA | $117.9 | 42% above |
EMR has the edge over CAT on trend strength, trading above more of its moving averages.
CAT Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $148.3 | $179.6 | +21% |
| 2021 | $179.6 | $206.2 | +15% |
| 2022 | $206.2 | $239.9 | +16% |
| 2023 | $239.9 | $295.7 | +23% |
| 2024 | $295.7 | $364.9 | +23% |
| 2025 | $364.9 | $583.0 | +60% |
| 2026 YTD | $583.0 | $605.3 | +3.8% |
CAT has finished every year since 2020 higher, and it's up 3.8% so far in 2026.
EMR Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $76.5 | $80.0 | +4.5% |
| 2021 | $80.0 | $91.3 | +14% |
| 2022 | $91.3 | $95.5 | +4.7% |
| 2023 | $95.5 | $97.3 | +1.9% |
| 2024 | $97.3 | $125.7 | +29% |
| 2025 | $125.7 | $135.7 | +8% |
| 2026 YTD | $135.7 | $166.9 | +23% |
EMR has the edge over CAT on returns for 2026, with the stronger performance.