CAT
Caterpillar Inc.
CAT has the edge over HON overall, supported by stronger modeled upside and stronger fundamentals.
HON
Honeywell International Inc.
HON offers stronger valuation, but that advantage does not outweigh its weaker overall profile.
CAT Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Strong | |
| Strong |
CAT's revenue, profitability, cash flow and balance sheet are all currently healthy.
HON Fundamentals
| Metric | Status |
|---|---|
| Weak | |
| Healthy | |
| Stable | |
| Healthy |
HON's profitability and balance sheet are currently healthy, and its cash flow is stable, but its revenue is weak.
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.
HON PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Current | 10x | $223 | — |
| Cheap | 20x | $438 | +96% |
| Fair | 23x | $515 | +130% |
| Forward | 24x | $223 | — |
| Expensive | 28x | $628 | +181% |
Historical ranges are pointers, not guarantees.
HON 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 |
CAT has the edge over HON on the outlook, with more favorable valuation and earnings expectations.
HON Forward outlook
| Metric | Outlook |
|---|---|
| Strongly deteriorating | |
| Stable | |
| Strong decline | |
| Strongly improving | |
| Limited | |
| High |
Analysts expect HON's profitability to improve, but its revenue to decline.
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.
HON Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $9.49 | -57% |
| Q3 2026 | $22.13 | +17% |
| Q2 2026 | $25.77 | +47% |
| Q1 2026 | $12.84 | -26% |
| Q4 2025 | $14.70 | -16% |
| Q3 2025 | $18.98 | +9.6% |
| Q2 2025 | $17.58 | +0.2% |
| Q1 2025 | $17.40 | +0.8% |
| Q4 2024 | $17.42 | +2.8% |
HON 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 has the edge over HON on sales, with more consistent year-over-year improvement.
| 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.
HON Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $5B | -52% |
| Q2 2026 | $9.7B | -6.1% |
| Q1 2026 | $9.1B | -6.9% |
| Q4 2025 | $9.8B | -3.3% |
| Q3 2025 | $10.4B | +7% |
| Q2 2025 | $10.4B | +8.1% |
| Q1 2025 | $9.8B | +7.9% |
| Q4 2024 | $10.1B | +6.9% |
HON's revenue has slid since its 2025 peak: $5B last quarter, down 52% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 21% | -1.9 points |
| Q2 2026 | 23% | +0.2 points |
| Q1 2026 | 23% | +0.3 points |
| Q4 2025 | 11% | -9.7 points |
| Q3 2025 | 23% | -0.5 points |
| Q2 2025 | 23% | -0.1 points |
| Q1 2025 | 23% | +0.8 points |
| Q4 2024 | 21% | +5 points |
HON 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 has the edge over HON on cash flow, with more consistent year-over-year improvement.
HON Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $286M | -90% |
| Q2 2026 | $961M | -5.4% |
| Q1 2026 | -$873M | -352% |
| Q4 2025 | $1.1B | -39% |
| Q3 2025 | $2.9B | +70% |
| Q2 2025 | $1B | -8.6% |
| Q1 2025 | $346M | +61% |
| Q4 2024 | $1.9B | -27% |
HON still generates free cash flow, though less than at its 2025 peak: $1.5B over the past year.
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 HON 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.
HON Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.2% | +600K shares |
| 1 year | -0.1% | -200K shares |
| 3 years | -4.3% | -14.3M shares |
| 5 years | -8.7% | -30.3M shares |
| Available history | -13% | -46M shares |
HON has 319M diluted shares, about the same as a year ago.
| Quarter | Spent |
|---|---|
| Q3 2026 | — |
| Q2 2026 | — |
| Q1 2026 | $1B |
| Q4 2025 | $100M |
| Q3 2025 | $100M |
| Q2 2025 | $1.7B |
| Q1 2025 | $1.9B |
| Q4 2024 | $455M |
HON spent $1.1B buying back its own shares over the past year, down 74% 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 HON on leverage, with a lower net debt burden relative to earnings.
HON Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 1.4x | Healthy |
| Q2 2026 | 2.8x | Moderate |
| Q1 2026 | 2.6x | Moderate |
| Q4 2025 | 2.3x | Moderate |
| Q3 2025 | 2.3x | Moderate |
| Q2 2025 | 2.5x | Moderate |
| Q1 2025 | 2.3x | Moderate |
| Q4 2024 | 2.1x | Moderate |
HON's net debt is about 1.4 years of its operating earnings (EBITDA), down from 2.3 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).
HON Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 51.9 | Neutral |
| Stochastic | 45.0 | Neutral |
HON's weekly RSI is 52 (neutral) and its Stochastic is 45 (neutral).
CAT PE vs Industrials Sector
| Metric | CAT | Sector median | Relative |
|---|---|---|---|
| PE | 24x | 24x | 1.1% below |
| PE % | 69 | 58 | 11 pts above |
CAT is trading at 24x earnings, in line with the Industrials sector's median of 24x.
HON PE vs Industrials Sector
| Metric | HON | Sector median | Relative |
|---|---|---|---|
| PE | 10x | 24x | 58% below |
| PE % | 4 | 58 | 54 pts below |
HON has the edge over CAT on valuation relative to its sector.
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.
HON Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $216.1 | 3.4% above |
| 20 week MA | $221.4 | 0.9% above |
| 50 week MA | $223.8 | 0.1% below |
| 100 week MA | $215.2 | 3.9% above |
| 200 week MA | $203.7 | 9.7% above |
HON 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.
HON Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $169.2 | $200.8 | +19% |
| 2021 | $200.8 | $196.7 | -2.1% |
| 2022 | $196.7 | $205.0 | +4.2% |
| 2023 | $205.0 | $201.0 | -1.9% |
| 2024 | $201.0 | $220.0 | +9.4% |
| 2025 | $220.0 | $200.7 | -8.8% |
| 2026 YTD | $200.7 | $223.5 | +11% |
HON has the edge over CAT on returns for 2026, with the stronger performance.