Caterpillar Inc. (CAT) vs Costco Wholesale Corporation (COST)

A side-by-side comparison of Caterpillar Inc. and Costco Wholesale Corporation across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 28, 2026. Differences are shown without an overall score or investment verdict.

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Different business models: CAT is classified in Industrials; COST is classified in Consumer Defensive. Margin, capital intensity, and valuation differences should be interpreted in that sector context.

Total returnCAT vs COST

growth of $100 · dividends reinvested · last 30y
CAT +10980.7%COST +11175.1%COST compounded faster
05k10kStart $100200120062011201620212026$11,081$11,275
CAT COST

CAT vs COST: by the numbers

  • COST is the larger company ($428.66B vs $387.33B market cap).
  • CAT trades at the lower trailing earnings multiple (43.45 vs 47.87 P/E), one valuation lens rather than an overall verdict.
  • CAT converts more revenue to profit (13.31% vs 3.01% net margin).
  • CAT grew revenue faster over the past five years (10.47% vs 9.48% CAGR).
  • CAT pays the higher dividend yield (0.69% vs 0.56%).

Metrics side by side

Valuation

MetricCATCOST
P/E ratio43.4547.87
Forward P/E35.2446.33
P/S ratio5.751.44
P/B ratio21.8012.62
PEG ratio1.555.23
EV / EBITDA31.7729.89
FCF yield2.81%2.08%

Profitability

MetricCATCOST
Gross margin32.52%12.88%
Operating margin16.56%3.82%
Net margin13.31%3.01%
ROE50.48%26.38%
ROIC11.42%19.44%

Dividends

MetricCATCOST
Dividend yield0.69%0.56%
Payout ratio31.96%29.44%

Growth (annualized)

MetricCATCOST
Revenue CAGR (5Y)10.47%9.48%
EPS CAGR (5Y)27.96%15.04%
FCF CAGR (5Y)17.77%4.95%
Total return CAGR (5Y)35.31%18.31%

Frequently asked

Which has the lower trailing P/E, CAT or COST?
CAT has the lower trailing P/E: CAT trades at 43.45 and COST at 47.87. P/E is one valuation measure and does not by itself establish which business is cheaper.
Which has grown faster, CAT or COST?
Over the past five years, CAT grew revenue faster — CAT at a 10.47% CAGR versus COST at 9.48%.
Does CAT or COST pay a bigger dividend?
CAT yields 0.69% and COST yields 0.56% based on trailing dividends and the latest price.
Is CAT or COST more profitable?
CAT runs the higher net margin — CAT at 13.31% versus COST at 3.01%.
How have CAT and COST total returns compared?
Over the past 10 years, CAT delivered 29.17% and COST delivered 20.06% annualized total return. Past performance doesn't predict future results.

Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified July 28, 2026.