CAT
Caterpillar Inc.
CAT has the edge over PSIX overall, supported by stronger fundamentals and lower modeled downside.
PSIX
Power Solutions International, Inc.
PSIX 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.
PSIX Fundamentals
| Metric | Status |
|---|---|
| Under pressure | |
| Stable | |
| Strong | |
| Strong |
PSIX's cash flow and balance sheet are currently strong, and its profitability is stable, but its revenue is under pressure.
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 PSIX in the historical PE scenario, which offers more potential upside but is not a forecast.
PSIX PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 3.1x | $9.56 | -76% |
| Fair | 10x | $31.91 | -19% |
| Forward | 11x | $39.42 | — |
| Current | 13x | $39.42 | — |
| Expensive | 17x | $52.04 | +32% |
Historical ranges are pointers, not guarantees.
PSIX's PE is in its expensive range at 13x. If earnings grow as analysts expect, today's price would be 11x next year's earnings, in its fair range.
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.
PSIX Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Strong growth | |
| Growth | |
| Strongly improving | |
| Limited | |
| Moderate |
Analysts expect earnings and revenue growth for PSIX, 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.
PSIX Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $3.54 | +16% |
| Q3 2026 | $3.04 | -42% |
| Q2 2026 | $2.94 | -39% |
| Q1 2026 | $4.43 | +25% |
| Q4 2025 | $4.94 | +64% |
| Q3 2025 | $5.26 | +122% |
| Q2 2025 | $4.81 | +145% |
| Q1 2025 | $3.53 | +172% |
| Q4 2024 | $3.01 | +162% |
PSIX 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 PSIX on profitability, with a higher operating margin.
PSIX Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $202.1M | -0.9% |
| Q2 2026 | $152.5M | -21% |
| Q1 2026 | $128.6M | -5.1% |
| Q4 2025 | $191.2M | +33% |
| Q3 2025 | $203.8M | +62% |
| Q2 2025 | $191.9M | +74% |
| Q1 2025 | $135.4M | +42% |
| Q4 2024 | $144.3M | +38% |
PSIX has the edge over CAT on sales, with stronger typical year-over-year growth.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 20% | +6.3 points |
| Q2 2026 | 16% | -1.3 points |
| Q1 2026 | 8.9% | -9.3 points |
| Q4 2025 | 13% | -4.8 points |
| Q3 2025 | 14% | -2.3 points |
| Q2 2025 | 17% | -6 points |
| Q1 2025 | 18% | +7 points |
| Q4 2024 | 17% | +5.7 points |
PSIX's operating margin was 20% last quarter, up 6.3 points from the same quarter a year ago, near the top of its range since 2019.
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.
PSIX Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $38.3M | +2119% |
| Q2 2026 | $55.7M | +281% |
| Q1 2026 | $17.2M | +219% |
| Q4 2025 | -$7.6M | -125% |
| Q3 2025 | $1.7M | -86% |
| Q2 2025 | $14.6M | +1679% |
| Q1 2025 | $5.4M | -63% |
| Q4 2024 | $30M | +398% |
PSIX 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 PSIX 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.
PSIX Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | 0% | +3K shares |
| 1 year | +0.1% | +14K shares |
| 3 years | +0.4% | +101K shares |
| 5 years | +0.7% | +155K shares |
| Available history | +7.2% | +1.5M shares |
PSIX has 23M 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 more cash than debt.
PSIX Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -0.7x | Net Cash |
| Q2 2026 | -0.7x | Net Cash |
| Q1 2026 | -0.4x | Net Cash |
| Q4 2025 | -0.4x | Net Cash |
| Q3 2025 | -0.4x | Net Cash |
| Q2 2025 | 0.4x | Very low |
| Q1 2025 | 0.6x | Very low |
| Q4 2024 | 0.8x | Very low |
PSIX has the edge over CAT on leverage, with a lower net debt burden relative to earnings.
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).
PSIX Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 43.7 | Neutral |
| Stochastic | 49.7 | Neutral |
PSIX's weekly RSI is 44 (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 is trading at 24x earnings, in line with the Industrials sector's median of 24x.
PSIX PE vs Industrials Sector
| Metric | PSIX | Sector median | Relative |
|---|---|---|---|
| PE | 13x | 24x | 46% below |
| PE % | 66 | 58 | 8 pts above |
PSIX 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 the edge over PSIX on trend strength, trading above more of its moving averages.
PSIX Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $44.7 | 12% below |
| 20 week MA | $40.0 | 1.4% below |
| 50 week MA | $54.1 | 27% below |
| 100 week MA | $55.3 | 29% below |
| 200 week MA | $31.2 | 27% above |
PSIX has fallen below most of its moving averages, though it's still 27% above its 200-week average.
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 PSIX on returns for 2026, with the stronger performance.
PSIX Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $4.25 | $3.26 | -23% |
| 2021 | $3.26 | $2.95 | -9.5% |
| 2022 | $2.95 | $2.92 | -1% |
| 2023 | $2.92 | $2.05 | -30% |
| 2024 | $2.05 | $27.1 | +1220% |
| 2025 | $27.1 | $65.5 | +142% |
| 2026 YTD | $65.5 | $39.4 | -40% |
PSIX has finished lower in four of the last six years. It's down 40% so far in 2026.