Is CAT or HON cheaper?

On trailing earnings, HON is cheaper: CAT trades at a 45.30 P/E and HON at 31.21.

Which has grown faster, CAT or HON?

Over the past five years, CAT grew revenue faster — CAT at a 10.47% CAGR versus HON at 2.42%.

Does CAT or HON pay a bigger dividend?

CAT yields 0.66% and HON yields 2.13% based on trailing dividends and the latest price.

Is CAT or HON more profitable?

CAT runs the higher net margin — CAT at 13.31% versus HON at 11.16%.

Which has been the better investment, CAT or HON?

Over the past 10-year, CAT delivered the higher annualized total return — CAT at 31.11% versus HON at 9.42%. Past performance doesn't predict future results.

Caterpillar Inc. (CAT) vs Honeywell International Inc. (HON)

CAT leads on 9 of 17 compared metrics, though HON is the cheaper stock.

A side-by-side comparison of Caterpillar Inc. and Honeywell International Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 15, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).

Honeywell International Inc.

$139.60B

$220.31Industrials

Total return — CAT vs HON

growth of $100 · last 30y

CAT +5472.6%HON +722.7%CAT compounded faster

Log scale — wide-divergence pair

CAT HON

CAT vs HON: by the numbers

•CAT is the larger company ($419.44B vs $139.60B market cap).
•HON trades at the lower earnings multiple (31.21 vs 45.30 P/E).
•CAT converts more revenue to profit (13.31% vs 11.16% net margin).
•CAT grew revenue faster over the past five years (10.47% vs 2.42% CAGR).
•HON pays the higher dividend yield (2.13% vs 0.66%).

Which is better, CAT or HON?

Metric tally: CAT 9 · HON 8

It depends on what you're optimizing for:

ValueHON(lower P/E)

GrowthCAT(faster 5Y revenue CAGR)

IncomeHON(higher dividend yield)

QualityCAT(higher ROIC)

Metrics side by side

Valuation

Metric	CAT	HON
P/E ratio	45.30	31.21●
Forward P/E	36.92	19.22●
P/S ratio	5.99	3.83●
P/B ratio	22.73	6.60●
PEG ratio	1.62●	17.93
EV / EBITDA	29.10	23.95●
FCF yield	2.70%	2.92%●

Profitability

Metric	CAT	HON
Gross margin	32.52%	36.95%●
Operating margin	16.56%●	14.87%
Net margin	13.31%●	11.16%
ROE	50.48%●	19.24%
ROIC	11.42%●	9.22%

Dividends

Metric	CAT	HON
Dividend yield	0.66%	2.13%●
Payout ratio	31.96%	63.51%

Growth (annualized)

Metric	CAT	HON
Revenue CAGR (5Y)	10.47%●	2.42%
EPS CAGR (5Y)	27.96%●	1.74%
FCF CAGR (5Y)	17.77%●	-4.80%
Total return CAGR (5Y)	35.15%●	1.55%

Frequently asked

Which is better, CAT or HON?: It depends on your goal. value: HON (lower P/E); growth: CAT (faster 5Y revenue CAGR); income: HON (higher dividend yield); quality: CAT (higher ROIC). Across all compared metrics, CAT leads 9 to 8.
Is CAT or HON cheaper?: On trailing earnings, HON is cheaper: CAT trades at a 45.30 P/E and HON at 31.21.
Which has grown faster, CAT or HON?: Over the past five years, CAT grew revenue faster — CAT at a 10.47% CAGR versus HON at 2.42%.
Does CAT or HON pay a bigger dividend?: CAT yields 0.66% and HON yields 2.13% based on trailing dividends and the latest price.
Is CAT or HON more profitable?: CAT runs the higher net margin — CAT at 13.31% versus HON at 11.16%.
Which has been the better investment, CAT or HON?: Over the past 10-year, CAT delivered the higher annualized total return — CAT at 31.11% versus HON at 9.42%. Past performance doesn't predict future results.

Go deeper

Full CAT analysis Full HON analysis Interactive comparison tool

Dig into the metrics

Caterpillar P/E ratio Honeywell International P/E ratio Caterpillar dividend yield Honeywell International dividend yield Caterpillar ROE Honeywell International ROE Caterpillar operating margin Honeywell International operating margin Caterpillar revenue growth Honeywell International revenue growth Caterpillar free cash flow Honeywell International free cash flow

Caterpillar & Honeywell International appear in these rankings

Highest Dividend Yield Stocks Highest ROE Stocks Best 10-Year Total Return Stocks Largest Companies by Market Cap

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 June 15, 2026.