CAT
Caterpillar Inc.
CAT offers stronger modeled upside, but that advantage does not outweigh its weaker overall profile.
HEI
HEICO Corporation
HEI has the edge over CAT overall, supported by stronger valuation and stronger fundamentals.
CAT Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Strong | |
| Strong |
CAT's revenue, profitability, cash flow and balance sheet are all currently healthy.
HEI Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Strong | |
| Healthy |
HEI's revenue, profitability, cash flow and balance sheet are all currently healthy.
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's PE is in its expensive range at 24x. If earnings grow as analysts expect, today's price would be 20x next year's earnings, in its fair range.
HEI PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 47x | $340 | — |
| Cheap | 53x | $321 | -5.5% |
| Current | 57x | $340 | — |
| Fair | 63x | $380 | +12% |
| Expensive | 70x | $423 | +25% |
Historical ranges are pointers, not guarantees.
HEI has the edge over CAT in the historical PE scenario, which offers more potential upside but is not a forecast.
CAT Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Strong growth | |
| Growth | |
| Improving | |
| Moderate | |
| Low |
Analysts expect earnings and revenue growth for CAT, with profitability improving. However, they disagree widely on these estimates.
HEI Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Strong growth | |
| Growth | |
| Improving | |
| Limited | |
| High |
Analysts expect earnings and revenue growth for HEI, with profitability improving.
CAT Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $29.73 | +17% |
| 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.
HEI Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $7.19 | +20% |
| Q3 2026 | $6.00 | +31% |
| Q2 2026 | $5.59 | +30% |
| Q1 2026 | $5.05 | +25% |
| Q4 2025 | $4.90 | +34% |
| Q3 2025 | $4.58 | +34% |
| Q2 2025 | $4.29 | +35% |
| Q1 2025 | $4.05 | +32% |
| Q4 2024 | $3.67 | +26% |
HEI 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's operating margin was 20% last quarter, up 3.1 points from the same quarter a year ago.
HEI Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $1.4B | +23% |
| Q2 2026 | $1.4B | +25% |
| Q1 2026 | $1.2B | +14% |
| Q4 2025 | $1.2B | +19% |
| Q3 2025 | $1.1B | +16% |
| Q2 2025 | $1.1B | +15% |
| Q1 2025 | $1B | +15% |
| Q4 2024 | $1B | +8.2% |
HEI has the edge over CAT on sales, with more consistent year-over-year improvement.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 25% | +2.1 points |
| Q2 2026 | 25% | +2.9 points |
| Q1 2026 | 22% | 0 points |
| Q4 2025 | 23% | +1.5 points |
| Q3 2025 | 23% | +1.3 points |
| Q2 2025 | 23% | +0.7 points |
| Q1 2025 | 22% | +1.9 points |
| Q4 2024 | 22% | +1.3 points |
HEI has the edge over CAT on profitability, with a higher operating margin.
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.
HEI Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $322.8M | +48% |
| Q2 2026 | $273.9M | +45% |
| Q1 2026 | $165.1M | -11% |
| Q4 2025 | $268.5M | +42% |
| Q3 2025 | $218.5M | +10% |
| Q2 2025 | $188.7M | +47% |
| Q1 2025 | $185.7M | +89% |
| Q4 2024 | $189.5M | +42% |
HEI has the edge over CAT on cash flow, with more consistent year-over-year improvement.
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 HEI 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.
HEI Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.1% | +201K shares |
| 1 year | +0.2% | +319K shares |
| 3 years | +1.9% | +2.6M shares |
| 5 years | +2.4% | +3.3M shares |
| Available history | +2.8% | +3.8M shares |
HEI has 141M diluted shares, about the same as a year ago.
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 HEI on leverage, with a lower net debt burden relative to earnings.
HEI Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 1.6x | Healthy |
| Q2 2026 | 1.7x | Healthy |
| Q1 2026 | 1.8x | Healthy |
| Q4 2025 | 1.6x | Healthy |
| Q3 2025 | 1.9x | Healthy |
| Q2 2025 | 1.9x | Healthy |
| Q1 2025 | 2.1x | Moderate |
| Q4 2024 | 2.1x | Moderate |
HEI's net debt is about 1.6 years of its operating earnings (EBITDA), down from 1.9 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).
HEI Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 55.4 | Neutral |
| Stochastic | 50.3 | Neutral |
HEI's weekly RSI is 55 (neutral) and its Stochastic is 50 (neutral).
CAT PE vs Industrials Sector
| Metric | CAT | Sector median | Relative |
|---|---|---|---|
| PE | 24x | 24x | 1.1% below |
| PE % | 69 | 58 | 11 pts above |
CAT has the edge over HEI on valuation relative to its sector.
HEI PE vs Industrials Sector
| Metric | HEI | Sector median | Relative |
|---|---|---|---|
| PE | 57x | 24x | 135% above |
| PE % | 24 | 58 | 34 pts below |
HEI is trading at 57x earnings, a 135% 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.
HEI Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $313.8 | 8.2% above |
| 20 week MA | $332.3 | 2.2% above |
| 50 week MA | $321.2 | 5.7% above |
| 100 week MA | $302.7 | 12% above |
| 200 week MA | $249.8 | 36% above |
HEI 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 the edge over HEI on returns for 2026, with the stronger performance.
HEI Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $115.1 | $131.2 | +14% |
| 2021 | $131.2 | $142.3 | +8.4% |
| 2022 | $142.3 | $154.2 | +8.4% |
| 2023 | $154.2 | $178.9 | +16% |
| 2024 | $178.9 | $240.9 | +35% |
| 2025 | $240.9 | $334.8 | +39% |
| 2026 YTD | $334.8 | $339.5 | +1.4% |
HEI has finished every year since 2020 higher, and it's up 1.4% so far in 2026.