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CAT vs TEX
Which Stock Would AI Choose? Caterpillar (CAT) vs. Terex (TEX) Stock Comparison
Key Takeaways
- Caterpillar (CAT) and Terex (TEX) both operate in the industrial equipment and machinery sector, with overlapping exposure to construction, mining, and infrastructure markets.
- CAT, the larger company by market capitalization, has delivered stronger long-term returns but experienced notable volatility in recent weeks amid analyst downgrades and broader market rotation.
- TEX trades at a significantly lower forward price-to-earnings ratio, positioning it as a potential value alternative within the same industry group.
- Both stocks have faced sector-wide pressures, though CAT’s larger scale and backlog provide different risk and growth dynamics compared to the smaller TEX.
- Recent market activity shows contrasting momentum patterns, with CAT exhibiting sharper swings and TEX maintaining a more compressed valuation profile.
- Relative performance highlights trade-offs between scale-driven stability at CAT and valuation-driven appeal at TEX for different investor profiles.
Introduction
This comparison examines CAT and TEX to help traders and investors assess two publicly traded companies in the industrial machinery space. Caterpillar and Terex share exposure to cyclical end markets such as construction and mining, yet differ in scale, valuation, and recent price behavior. The analysis focuses on observable factors including business models, recent performance trends, and market positioning. Institutional and retail investors seeking to understand relative strengths within the heavy equipment sector may find the review relevant for portfolio allocation decisions or sector rotation strategies.
Caterpillar (CAT) Overview and Recent Performance
Caterpillar Inc. manufactures construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. The company serves global infrastructure, energy, and transportation markets. In recent market activity, CAT shares displayed elevated volatility, retreating from levels near recent highs amid a series of analyst rating changes and sector rotation pressures. Broader sentiment was influenced by concerns over regulatory developments and shifting capital allocation away from certain industrial names. Despite short-term fluctuations, the firm reported solid first-quarter results earlier in the year, supported by volume growth and a substantial backlog. Market participants have monitored the stock’s reaction to these factors during recent weeks.
Terex (TEX) Overview and Recent Performance
Terex Corporation designs and manufactures lifting and material processing equipment used in construction, infrastructure, and recycling applications. The company operates a more compact business model compared with larger peers. In recent market activity, TEX has maintained a steadier price trajectory within a narrower range, reflecting its smaller market capitalization and more focused product lines. Valuation metrics have remained attractive relative to industry averages, with limited analyst commentary generating outsized moves. Broader industrial sector dynamics have influenced performance, yet TEX has shown resilience in price behavior during the same period of volatility affecting larger names.
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Head-to-Head Comparison
Caterpillar operates at substantially greater scale with diversified revenue streams and a larger global footprint, while Terex maintains a more concentrated product portfolio and lower enterprise value. Growth drivers for CAT include infrastructure spending and mining demand, tempered recently by analyst caution; TEX benefits from similar end markets but at a smaller base, potentially offering greater percentage sensitivity to cyclical upturns. Recent momentum has favored neither decisively, though CAT experienced sharper drawdowns amid rating revisions. Risk factors differ: CAT’s size provides earnings stability yet invites greater scrutiny, whereas TEX’s lower forward price-to-earnings ratio (approximately 14 versus CAT’s higher multiple) may appeal to value-oriented strategies but carries higher relative volatility due to its smaller capitalization. Sector exposure remains closely aligned, yet market sentiment has treated the names differently in recent weeks, highlighting trade-offs between established leadership and valuation compression.
Tickeron AI Verdict
Based on observable trend consistency, valuation positioning, and relative stability metrics, Tickeron’s AI models currently assign a modestly higher probabilistic preference to TEX for strategies emphasizing value characteristics, while noting that CAT retains advantages in scale and backlog visibility. Any edge remains probabilistic and subject to evolving market data rather than a definitive ranking.
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.
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 TEX 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 3 FA rating(s) are green whileTEX’s FA Score has 2 green FA rating(s).
- CAT’s FA Score: 3 green, 2 red.
- TEX’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 TEX’s TA Score has 2 bullish TA indicator(s).
- CAT’s TA Score: 4 bullish, 6 bearish.
- TEX’s TA Score: 2 bullish, 7 bearish.
Price Growth
CAT (@Trucks/Construction/Farm Machinery) experienced а -8.32% price change this week, while TEX (@Trucks/Construction/Farm Machinery) price change was -10.01% for the same time period.
The average weekly price growth across all stocks in the @Trucks/Construction/Farm Machinery industry was -3.97%. For the same industry, the average monthly price growth was -6.17%, and the average quarterly price growth was -5.07%.
Reported Earning Dates
CAT is expected to report earnings on Aug 04, 2026.
TEX is expected to report earnings on Oct 22, 2026.
Industries' Descriptions
@Trucks/Construction/Farm Machinery (-3.97% 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 | TEX | CAT / TEX | |
| Capitalization | 375B | 7.18B | 5,221% |
| EBITDA | 15B | 619M | 2,423% |
| Gain YTD | 43.102 | 18.361 | 235% |
| P/E Ratio | 40.58 | 30.07 | 135% |
| Revenue | 70.8B | 6.68B | 1,060% |
| Total Cash | N/A | 407M | - |
| Total Debt | 43.1B | 2.69B | 1,604% |
CAT | TEX | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 64 | 71 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 89 Overvalued | 30 Undervalued | |
PROFIT vs RISK RATING 1..100 | 20 | 66 | |
SMR RATING 1..100 | 20 | 87 | |
PRICE GROWTH RATING 1..100 | 47 | 51 | |
P/E GROWTH RATING 1..100 | 10 | 15 | |
SEASONALITY SCORE 1..100 | 65 | 65 |
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.
TEX's Valuation (30) in the Trucks Or Construction Or Farm Machinery industry is somewhat better than the same rating for CAT (89). This means that TEX’s stock grew somewhat faster than CAT’s over the last 12 months.
CAT's Profit vs Risk Rating (20) in the Trucks Or Construction Or Farm Machinery industry is somewhat better than the same rating for TEX (66). This means that CAT’s stock grew somewhat faster than TEX’s over the last 12 months.
CAT's SMR Rating (20) in the Trucks Or Construction Or Farm Machinery industry is significantly better than the same rating for TEX (87). This means that CAT’s stock grew significantly faster than TEX’s over the last 12 months.
CAT's Price Growth Rating (47) in the Trucks Or Construction Or Farm Machinery industry is in the same range as TEX (51). This means that CAT’s stock grew similarly to TEX’s over the last 12 months.
CAT's P/E Growth Rating (10) in the Trucks Or Construction Or Farm Machinery industry is in the same range as TEX (15). This means that CAT’s stock grew similarly to TEX’s over the last 12 months.
| CAT | TEX | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 65% | 5 days ago 76% |
| Stochastic ODDS (%) | 3 days ago 73% | 3 days ago 79% |
| Momentum ODDS (%) | 3 days ago 51% | 3 days ago 70% |
| MACD ODDS (%) | 3 days ago 58% | 3 days ago 72% |
| TrendWeek ODDS (%) | 3 days ago 58% | 3 days ago 70% |
| TrendMonth ODDS (%) | 3 days ago 59% | 3 days ago 70% |
| Advances ODDS (%) | 3 days ago 73% | 10 days ago 73% |
| Declines ODDS (%) | 5 days ago 56% | 4 days ago 67% |
| BollingerBands ODDS (%) | 3 days ago 68% | 3 days ago 77% |
| Aroon ODDS (%) | 3 days ago 64% | 3 days ago 71% |
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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.
TEX and
Correlation & Price change
A.I.dvisor indicates that over the last year, TEX has been loosely correlated with OSK. These tickers have moved in lockstep 66% of the time. This A.I.-generated data suggests there is some statistical probability that if TEX jumps, then OSK could also see price increases.