CAT
Caterpillar Inc.
CAT has the edge over LMT overall, supported by stronger modeled upside and lower modeled downside.
LMT
Lockheed Martin Corporation
LMT 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.
LMT Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Healthy | |
| Unavailable |
LMT's revenue, profitability and cash flow are currently healthy. There isn't enough data to rate its balance sheet.
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.
LMT PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 16x | $442 | -27% |
| Fair | 19x | $533 | -12% |
| Forward | 19x | $604 | — |
| Current | 21x | $604 | — |
| Expensive | 23x | $647 | +7.2% |
Historical ranges are pointers, not guarantees.
LMT 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.
LMT Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Growth | |
| Growth | |
| Improving | |
| Limited | |
| Moderate |
Analysts expect earnings and revenue growth for LMT, 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 has the edge over LMT on earnings, with more consistent year-over-year improvement.
LMT Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $32.14 | +14% |
| Q3 2026 | $28.15 | +57% |
| Q2 2026 | $27.13 | +52% |
| Q1 2026 | $20.65 | -11% |
| Q4 2025 | $21.49 | -3.7% |
| Q3 2025 | $17.96 | -35% |
| Q2 2025 | $17.81 | -35% |
| Q1 2025 | $23.20 | -15% |
| Q4 2024 | $22.31 | -19% |
LMT earned $28.15 per share over the past year, up 57% from the year before.
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 LMT on profitability, with a higher operating margin.
LMT Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $20.7B | +11% |
| Q2 2026 | $20.1B | +11% |
| Q1 2026 | $18B | +0.3% |
| Q4 2025 | $20.3B | +9.1% |
| Q3 2025 | $18.6B | +8.8% |
| Q2 2025 | $18.2B | +0.2% |
| Q1 2025 | $18B | +4.5% |
| Q4 2024 | $18.6B | -1.3% |
LMT's revenue has grown year over year for seven quarters in a row: $20.7B last quarter, up 11% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 12% | -0.4 points |
| Q2 2026 | 12% | +8.2 points |
| Q1 2026 | 11% | -1.8 points |
| Q4 2025 | 11% | +7.7 points |
| Q3 2025 | 12% | -0.3 points |
| Q2 2025 | 4.1% | -7.7 points |
| Q1 2025 | 13% | +1.4 points |
| Q4 2024 | 3.7% | -8.4 points |
LMT's operating margin was 12% last quarter, about level with 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 has the edge over LMT on cash flow, with more consistent year-over-year improvement.
LMT Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $3B | -10% |
| Q2 2026 | $2.9B | +$3.1B |
| Q1 2026 | -$291M | -130% |
| Q4 2025 | $2.8B | +525% |
| Q3 2025 | $3.3B | +61% |
| Q2 2025 | -$150M | -110% |
| Q1 2025 | $955M | -24% |
| Q4 2024 | $441M | -73% |
LMT generated $8.4B in free cash flow over the past year, up 82% from the year before.
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 LMT 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.
LMT Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.2% | +400K shares |
| 1 year | -0.6% | -1.3M shares |
| 3 years | -7.5% | -18.7M shares |
| 5 years | -17% | -45.8M shares |
| Available history | -18% | -52.3M shares |
LMT has 232M diluted shares, down 0.6% from a year ago.
| Quarter | Spent |
|---|---|
| Q3 2026 | — |
| Q2 2026 | — |
| Q1 2026 | — |
| Q4 2025 | $750M |
| Q3 2025 | $1B |
| Q2 2025 | $500M |
| Q1 2025 | $750M |
| Q4 2024 | $1B |
LMT spent $750M buying back its own shares over the past year, down 77% 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 more cash than debt.
LMT Net Leverage
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).
LMT Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 56.7 | Neutral |
| Stochastic | 66.1 | Neutral |
LMT's weekly RSI is 57 (neutral) and its Stochastic is 66 (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.
LMT PE vs Industrials Sector
| Metric | LMT | Sector median | Relative |
|---|---|---|---|
| PE | 21x | 24x | 11% below |
| PE % | 74 | 58 | 16 pts above |
LMT 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.
LMT Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $562.4 | 7.4% above |
| 20 week MA | $557.5 | 8.4% above |
| 50 week MA | $561.3 | 7.6% above |
| 100 week MA | $513.6 | 18% above |
| 200 week MA | $494.5 | 22% above |
LMT 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.
LMT Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $393.6 | $352.0 | -11% |
| 2021 | $352.0 | $347.0 | -1.4% |
| 2022 | $347.0 | $483.3 | +39% |
| 2023 | $483.3 | $453.2 | -6.2% |
| 2024 | $453.2 | $489.0 | +7.9% |
| 2025 | $489.0 | $483.0 | -1.2% |
| 2026 YTD | $483.0 | $604.1 | +25% |
LMT has the edge over CAT on returns for 2026, with the stronger performance.