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CAT vs ETN

CAT
Caterpillar Inc.
NEUTRAL
Price
$735.35
Market Cap
$344.13B
Sector
Industrials
AI Confidence
90%
ETN
Eaton Corporation plc
BULLISH
Price
$352.39
Market Cap
$137.52B
Sector
Industrials
AI Confidence
88%

Valuation

P/E Ratio
CAT
39.01
ETN
35.34
Forward P/E
CAT
26.48
ETN
29.24
P/B Ratio
CAT
16.05
ETN
7.26
P/S Ratio
CAT
5.09
ETN
5.16
EV/EBITDA
CAT
26.1
ETN
24.14

Profitability

Gross Margin
CAT
28.79%
ETN
38.27%
Operating Margin
CAT
16.02%
ETN
19.78%
Profit Margin
CAT
13.14%
ETN
14.74%
ROE
CAT
43.53%
ETN
20.65%
ROA
CAT
7.89%
ETN
8.03%

Growth

Revenue Growth
CAT
18.0%
ETN
10.1%
Earnings Growth
CAT
-11.4%
ETN
2.4%

Financial Health

Debt/Equity
CAT
2.07
ETN
0.6
Current Ratio
CAT
1.44
ETN
1.28
Quick Ratio
CAT
0.87
ETN
0.71

Dividends

Dividend Yield
CAT
0.85%
ETN
1.18%
Payout Ratio
CAT
31.05%
ETN
40.64%

AI Verdict

CAT NEUTRAL

CAT shows neutral fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Mixed signals with both opportunities and risks present.

Strengths
Strong revenue growth of 18.0%
Strong ROE of 43.5%
Risks
High valuation with P/E of 39.0
Premium vs Graham Number ($139.4)
High debt burden with D/E of 2.07
ETN BULLISH

Eaton Corporation (ETN) exhibits strong fundamental quality with consistent earnings outperformance, robust profitability, and a resilient growth trajectory despite near-term macro headwinds. The stock trades at a premium valuation (P/E 35.35 vs sector 26.18), justified by superior margin profile (19.78% operating margin) and reliable execution, as evidenced by 24 of the last 25 quarters beating EPS estimates. While insider selling raises a minor concern, the overwhelming analyst consensus (24 analysts, Buy rating) and strong long-term price momentum (225.4% over 5Y) support continued outperformance. Relative to peers like HON and DE, ETN demonstrates better earnings stability and capital efficiency, positioning it well for structural tailwinds in electrification and industrial automation.

Strengths
Consistent earnings beat streak: 24 of last 25 quarters beat EPS estimates, with 10+ consecutive quarters of positive surprises exceeding 0.5%
Superior profitability: 19.78% operating margin and 14.74% net margin significantly above sector averages of 11.10%
High return on equity: 20.65% ROE, reflecting efficient capital allocation despite lower leverage than peers
Risks
Rich valuation: P/E of 35.35 is 35% above sector average (26.18), increasing sensitivity to growth deceleration
Insider selling: Recent $5.74M sale by an officer signals lack of near-term confidence despite strong fundamentals
Elevated price-to-book: 7.26x vs sector median, suggesting potential overvaluation if ROE regresses

Compare Another Pair

CAT vs ETN: Head-to-Head Comparison

This page compares Caterpillar Inc. (CAT) and Eaton Corporation plc (ETN) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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