Caterpillar Inc. (CAT) vs Microsoft Corporation (MSFT)
A side-by-side comparison of Caterpillar Inc. and Microsoft 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.
Different business models: CAT is classified in Industrials; MSFT is classified in Technology. Margin, capital intensity, and valuation differences should be interpreted in that sector context.
CAT
Caterpillar Inc.
$840.85IndustrialsDelayed quote: Jul 28, 2026, 4:00 PM EDT
MSFT
Microsoft Corporation
$393.35TechnologyDelayed quote: Jul 28, 2026, 4:00 PM EDT
Total return — CAT vs MSFT
growth of $100 · dividends reinvested · last 30yCAT +10980.7%MSFT +7530.9%CAT compounded faster
CAT MSFT
CAT vs MSFT: by the numbers
- •MSFT is the larger company ($2.92T vs $387.33B market cap).
- •MSFT trades at the lower trailing earnings multiple (23.16 vs 43.45 P/E), one valuation lens rather than an overall verdict.
- •MSFT converts more revenue to profit (39.34% vs 13.31% net margin).
- •MSFT grew revenue faster over the past five years (14.75% vs 10.47% CAGR).
- •MSFT pays the higher dividend yield (0.91% vs 0.69%).
Metrics side by side
Valuation
| Metric | CAT | MSFT |
|---|---|---|
| P/E ratio | 43.45 | 23.16 |
| Forward P/E | 35.24 | 22.87 |
| P/S ratio | 5.75 | 9.10 |
| P/B ratio | 21.80 | 6.99 |
| PEG ratio | 1.55 | 2.34 |
| EV / EBITDA | 31.77 | 15.53 |
| FCF yield | 2.81% | 2.52% |
Profitability
| Metric | CAT | MSFT |
|---|---|---|
| Gross margin | 32.52% | 68.31% |
| Operating margin | 16.56% | 46.80% |
| Net margin | 13.31% | 39.34% |
| ROE | 50.48% | 30.22% |
| ROIC | 11.42% | 21.63% |
Dividends
| Metric | CAT | MSFT |
|---|---|---|
| Dividend yield | 0.69% | 0.91% |
| Payout ratio | 31.96% | 25.99% |
Growth (annualized)
| Metric | CAT | MSFT |
|---|---|---|
| Revenue CAGR (5Y) | 10.47% | 14.75% |
| EPS CAGR (5Y) | 27.96% | 18.68% |
| FCF CAGR (5Y) | 17.77% | 6.27% |
| Total return CAGR (5Y) | 35.31% | 7.19% |
Frequently asked
- Which has the lower trailing P/E, CAT or MSFT?
- MSFT has the lower trailing P/E: CAT trades at 43.45 and MSFT at 23.16. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, CAT or MSFT?
- Over the past five years, MSFT grew revenue faster — CAT at a 10.47% CAGR versus MSFT at 14.75%.
- Does CAT or MSFT pay a bigger dividend?
- CAT yields 0.69% and MSFT yields 0.91% based on trailing dividends and the latest price.
- Is CAT or MSFT more profitable?
- MSFT runs the higher net margin — CAT at 13.31% versus MSFT at 39.34%.
- How have CAT and MSFT total returns compared?
- Over the past 10 years, CAT delivered 29.17% and MSFT delivered 22.86% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Caterpillar P/E ratioMicrosoft P/E ratioCaterpillar dividend yieldMicrosoft dividend yieldCaterpillar ROEMicrosoft ROECaterpillar operating marginMicrosoft operating marginCaterpillar revenue growthMicrosoft revenue growthCaterpillar free cash flowMicrosoft free cash flow
Caterpillar & Microsoft appear in these rankings
Highest ROE StocksHighest ROIC StocksHighest Operating Margin StocksHighest 10-Year Total Return Stocks
Related comparisons
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.