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CAT vs CNH
Which Stock Would AI Choose? Caterpillar Inc. (CAT) vs. CNH Industrial N.V. (CNH) Stock Comparison
Key Takeaways
- CAT has delivered approximately 40% year-to-date gains, vastly outpacing CNH's 18% rise, driven by robust backlog and sector tailwinds.
- CAT maintains a $51 billion order backlog and strong recent sales of $19.1 billion, signaling sustained demand in construction and power generation.
- CNH reported Q4 revenue growth but flagged weaker 2026 profitability amid sluggish agricultural machinery demand.
- CAT's return on equity (ROE, a measure of profitability relative to shareholders' equity) stands at 44%, compared to CNH's 6%.
- Both stocks exhibit high debt-to-equity ratios, with CNH at 346% versus CAT's 207%, highlighting leverage risks in cyclical sectors.
- Technical indicators favor CAT with a strong buy signal and uptrend momentum.
Introduction
Caterpillar Inc. (CAT) and CNH Industrial N.V. (CNH) are prominent players in the heavy machinery sector, with overlapping exposure to construction equipment but distinct emphases—CAT on broad infrastructure and power systems, and CNH on agriculture alongside construction. This stock comparison is relevant for investors tracking industrial cyclicals, particularly amid infrastructure spending and agricultural headwinds. Traders seeking relative performance insights in recent market activity will find value in evaluating their momentum, financial health, and sector positioning for portfolio allocation decisions.
CAT Overview and Recent Performance
Caterpillar Inc. (CAT) is the world's leading manufacturer of construction and mining equipment, engines, and industrial turbines, benefiting from global infrastructure demand and data center power needs. In recent weeks, CAT shares have rallied over 16%, pushing toward all-time highs near $800 amid strong earnings momentum. Key drivers include a $51 billion backlog and $19.1 billion in recent sales, underscoring resilient demand. The acquisition of Monarch Tractor bolsters automation and electrification efforts, aligning with emerging trends in sustainable machinery. Sentiment remains positive, supported by analyst upgrades and a price-to-earnings (P/E, a valuation metric comparing price to earnings) ratio of 42, reflecting premium growth expectations.
CNH Overview and Recent Performance
CNH Industrial N.V. (CNH) produces agricultural and construction equipment under brands like Case IH and New Holland, with agriculture comprising the majority of sales. Recent market activity saw CNH shares decline about 20% post-Q4 earnings, though recovering somewhat to around $11. Q4 revenues rose 6% to $5.16 billion, beating estimates, but a subdued 2026 outlook due to soft farm machinery demand pressured sentiment. Higher debt levels and cyclical agricultural exposure have weighed on performance, with a P/E ratio of 26 indicating relative value but tempered by analyst holds around $12-$14 targets. Recent Barclays overweight reaffirmation highlights potential in tough conditions.
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Head-to-Head Comparison
CAT and CNH both navigate machinery cycles, but CAT's diversified model emphasizes construction (70%+ revenue) and power generation, contrasting CNH's agriculture-heavy focus (82%). Growth drivers differ: CAT gains from infrastructure and data center demand, while CNH faces farm inventory destocking. Recent momentum favors CAT with 40% YTD returns versus 18%, and stronger technicals like upsloping channels. Risk factors include high leverage for both, though CNH's 346% debt-to-equity exceeds CAT's 207%; betas are similar at 1.5 and 1.3. Market sentiment tilts toward CAT on backlog strength, while CNH trades at a discount on valuation trade-offs.
Tickeron AI Verdict
Tickeron’s AI currently leans toward CAT based on superior trend consistency, 40% YTD outperformance, $51 billion backlog stability, and catalysts like electrification acquisitions. CNH offers value at lower multiples but lags on agricultural headwinds and weaker ROE. Probabilistic edge favors CAT for momentum traders in the near term, though sector rotations could shift dynamics.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is CAT is a Hold and CNH is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
CAT’s FA Score shows that 4 FA rating(s) are green whileCNH’s FA Score has 2 green FA rating(s).
- CAT’s FA Score: 4 green, 1 red.
- CNH’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
CAT’s TA Score shows that 4 TA indicator(s) are bullish while CNH’s TA Score has 3 bullish TA indicator(s).
- CAT’s TA Score: 4 bullish, 4 bearish.
- CNH’s TA Score: 3 bullish, 5 bearish.
Price Growth
CAT (@Trucks/Construction/Farm Machinery) experienced а +3.36% price change this week, while CNH (@Trucks/Construction/Farm Machinery) price change was -2.14% for the same time period.
The average weekly price growth across all stocks in the @Trucks/Construction/Farm Machinery industry was +7.42%. For the same industry, the average monthly price growth was +9.22%, and the average quarterly price growth was +10.65%.
Reported Earning Dates
CAT is expected to report earnings on Aug 04, 2026.
CNH is expected to report earnings on Jul 24, 2026.
Industries' Descriptions
@Trucks/Construction/Farm Machinery (+7.42% weekly)The industry designs and builds agricultural, construction and other large commercial and transportation equipment. Tractors, planters and harvesters, as well as rock-crushing, railroad, demolition and other construction implements are produced by this industry. Rapid urbanization and industrialization has been bolstering the expansion of the construction sector in the past few decades, thereby boosting demand for heavy equipment businesses. Caterpillar Inc., Deere & Company and Cummins Inc (Ex. Cummins Engine Inc) are some prominent companies in this industry.
| CAT | CNH | CAT / CNH | |
| Capitalization | 435B | 13B | 3,346% |
| EBITDA | 15B | 2.6B | 577% |
| Gain YTD | 65.740 | 15.092 | 436% |
| P/E Ratio | 47.08 | 32.84 | 143% |
| Revenue | 70.8B | 18.1B | 391% |
| Total Cash | 4.07B | 1.6B | 254% |
| Total Debt | 43.1B | 26.2B | 165% |
CAT | CNH | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 16 | 64 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 81 Overvalued | 23 Undervalued | |
PROFIT vs RISK RATING 1..100 | 3 | 100 | |
SMR RATING 1..100 | 19 | 86 | |
PRICE GROWTH RATING 1..100 | 5 | 53 | |
P/E GROWTH RATING 1..100 | 6 | 11 | |
SEASONALITY SCORE 1..100 | 50 | 46 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
CNH's Valuation (23) in the Trucks Or Construction Or Farm Machinery industry is somewhat better than the same rating for CAT (81). This means that CNH’s stock grew somewhat faster than CAT’s over the last 12 months.
CAT's Profit vs Risk Rating (3) in the Trucks Or Construction Or Farm Machinery industry is significantly better than the same rating for CNH (100). This means that CAT’s stock grew significantly faster than CNH’s over the last 12 months.
CAT's SMR Rating (19) in the Trucks Or Construction Or Farm Machinery industry is significantly better than the same rating for CNH (86). This means that CAT’s stock grew significantly faster than CNH’s over the last 12 months.
CAT's Price Growth Rating (5) in the Trucks Or Construction Or Farm Machinery industry is somewhat better than the same rating for CNH (53). This means that CAT’s stock grew somewhat faster than CNH’s over the last 12 months.
CAT's P/E Growth Rating (6) in the Trucks Or Construction Or Farm Machinery industry is in the same range as CNH (11). This means that CAT’s stock grew similarly to CNH’s over the last 12 months.
| CAT | CNH | |
|---|---|---|
| RSI ODDS (%) | 6 days ago 54% | N/A |
| Stochastic ODDS (%) | 2 days ago 50% | 2 days ago 69% |
| Momentum ODDS (%) | 2 days ago 73% | 2 days ago 70% |
| MACD ODDS (%) | 2 days ago 72% | 2 days ago 60% |
| TrendWeek ODDS (%) | 2 days ago 71% | 2 days ago 70% |
| TrendMonth ODDS (%) | 2 days ago 68% | 2 days ago 69% |
| Advances ODDS (%) | 2 days ago 73% | 3 days ago 59% |
| Declines ODDS (%) | 8 days ago 58% | 10 days ago 67% |
| BollingerBands ODDS (%) | 2 days ago 62% | 2 days ago 68% |
| Aroon ODDS (%) | 2 days ago 64% | N/A |
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CAT and
Correlation & Price change
A.I.dvisor indicates that over the last year, CAT has been loosely correlated with TEX. These tickers have moved in lockstep 60% of the time. This A.I.-generated data suggests there is some statistical probability that if CAT jumps, then TEX could also see price increases.
| Ticker / NAME | Correlation To CAT | 1D Price Change % | ||
|---|---|---|---|---|
| CAT | 100% | +1.23% | ||
| TEX - CAT | 60% Loosely correlated | -0.51% | ||
| CNH - CAT | 57% Loosely correlated | -1.50% | ||
| MTW - CAT | 54% Loosely correlated | +1.99% | ||
| ASTE - CAT | 53% Loosely correlated | +0.73% | ||
| CMCO - CAT | 52% Loosely correlated | -7.19% | ||
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