CAT
Caterpillar Inc.
CAT offers stronger modeled upside, but that advantage does not outweigh its weaker overall profile.
TXT
Textron Inc.
TXT has a slight edge over CAT overall, supported by stronger valuation.
CAT Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Strong | |
| Strong |
CAT's revenue, profitability, cash flow and balance sheet are all currently healthy.
TXT Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Healthy | |
| Healthy | |
| Strong |
TXT's profitability, cash flow and balance sheet are currently healthy, and its revenue is 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'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.
TXT PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 12x | $84.31 | — |
| Current | 15x | $84.31 | — |
| Cheap | 16x | $89.89 | +6.6% |
| Fair | 18x | $101 | +20% |
| Expensive | 23x | $126 | +49% |
Historical ranges are pointers, not guarantees.
TXT 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 | |
| Strongly improving | |
| Moderate | |
| Low |
Analysts expect earnings and revenue growth for CAT, with profitability improving. However, they disagree widely on these estimates.
TXT Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Growth | |
| Growth | |
| Improving | |
| Limited | |
| High |
Analysts expect earnings and revenue growth for TXT, 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.
TXT Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $7.03 | +27% |
| Q3 2026 | $5.55 | +22% |
| Q2 2026 | $5.30 | +20% |
| Q1 2026 | $5.23 | +18% |
| Q4 2025 | $5.11 | +18% |
| Q3 2025 | $4.56 | +0.2% |
| Q2 2025 | $4.43 | -6.1% |
| Q1 2025 | $4.43 | -5.1% |
| Q4 2024 | $4.33 | -5% |
TXT 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 TXT on profitability, with a higher operating margin.
TXT Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $3.8B | +4.1% |
| Q2 2026 | $3.8B | +3% |
| Q1 2026 | $3.7B | +12% |
| Q4 2025 | $4.2B | +16% |
| Q3 2025 | $3.6B | +5.1% |
| Q2 2025 | $3.7B | +5.4% |
| Q1 2025 | $3.3B | +5.5% |
| Q4 2024 | $3.6B | -7.2% |
TXT's revenue has grown year over year for seven quarters in a row: $3.8B last quarter, up 4.1% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 8.6% | -0.2 points |
| Q2 2026 | 7.9% | -0.2 points |
| Q1 2026 | 7.2% | -0.1 points |
| Q4 2025 | 6.7% | +3 points |
| Q3 2025 | 8.8% | +1.4 points |
| Q2 2025 | 8.1% | -1.1 points |
| Q1 2025 | 7.3% | -0.3 points |
| Q4 2024 | 3.6% | -2.3 points |
TXT's operating margin was 8.6% 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 generated $11.3B in free cash flow over the past year, up 26% from the year before.
TXT Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $323M | +18% |
| Q2 2026 | $209M | -32% |
| Q1 2026 | -$250M | -$70M |
| Q4 2025 | $527M | +80% |
| Q3 2025 | $273M | +99% |
| Q2 2025 | $309M | +5.5% |
| Q1 2025 | -$180M | -$107M |
| Q4 2024 | $293M | -21% |
TXT still generates free cash flow, though less than at its 2020 peak: $809M 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 461M diluted shares, down 2.1% from a year ago, with $8.1B in buybacks over the past year.
| 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.
TXT Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -1.4% | -2.5M shares |
| 1 year | -3.7% | -6.6M shares |
| 3 years | -14% | -27.5M shares |
| 5 years | -24% | -54M shares |
| Available history | -25% | -57.3M shares |
TXT has the edge over CAT on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q3 2026 | $239M |
| Q2 2026 | $209M |
| Q1 2026 | $168M |
| Q4 2025 | $187M |
| Q3 2025 | $206M |
| Q2 2025 | $214M |
| Q1 2025 | $215M |
| Q4 2024 | $232M |
TXT spent $803M buying back its own shares over the past year, down 7.4% 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.
TXT Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -1.1x | Net Cash |
| Q2 2026 | -1.0x | Net Cash |
| Q1 2026 | -1.0x | Net Cash |
| Q4 2025 | -1.3x | Net Cash |
| Q3 2025 | -1.1x | Net Cash |
| Q2 2025 | -1.1x | Net Cash |
| Q1 2025 | -0.9x | Net Cash |
| Q4 2024 | -1.1x | Net Cash |
TXT 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).
TXT Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 50.4 | Neutral |
| Stochastic | 61.8 | Neutral |
TXT's weekly RSI is 50 (neutral) and its Stochastic is 62 (neutral).
CAT PE vs Industrials Sector
| Metric | CAT | Sector median | Relative |
|---|---|---|---|
| PE | 24x | 24x | 1.3% below |
| PE % | 69 | 58 | 11 pts above |
CAT is trading at 24x earnings, in line with the Industrials sector's median of 24x.
TXT PE vs Industrials Sector
| Metric | TXT | Sector median | Relative |
|---|---|---|---|
| PE | 15x | 24x | 37% below |
| PE % | 12 | 58 | 46 pts below |
TXT 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.
TXT Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $79.3 | 6.3% above |
| 20 week MA | $83.7 | 0.7% above |
| 50 week MA | $88.4 | 4.6% below |
| 100 week MA | $82.8 | 1.8% above |
| 200 week MA | $81.4 | 3.6% above |
TXT 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 TXT on returns for 2026, with the stronger performance.
TXT Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $44.4 | $48.1 | +8.4% |
| 2021 | $48.1 | $75.9 | +58% |
| 2022 | $75.9 | $70.4 | -7.2% |
| 2023 | $70.4 | $80.4 | +14% |
| 2024 | $80.4 | $77.2 | -4% |
| 2025 | $77.2 | $90.2 | +17% |
| 2026 YTD | $90.2 | $84.3 | -6.6% |
TXT has finished higher in four of the last six years. It's down 6.6% so far in 2026.