Caterpillar vs Honeywell (CAT vs HON)
Caterpillar (CAT) vs Honeywell (HON) in plain English: P/E, growth, margins, debt and dividend side by side, key differences and which fits each investor profile.
Caterpillar (CAT) and Honeywell (HON) compete in industrials. Here are Caterpillar and Honeywell side by side with their real figures as of November 4, 2026: what sets them apart, which fits each kind of investor and the most common questions, without telling you whether to buy Caterpillar or Honeywell.
Caterpillar vs Honeywell: the figures
| Figure | Caterpillar | Honeywell |
|---|---|---|
| Share price | $591.30 (November 4, 2026) | $228.47 (November 4, 2026) |
| Market cap | $271.8 billion | $72.4 billion |
| P/E (TTM) | 23.2x | 11.3x |
| Forward P/E | 18.3x | 23.2x |
| Revenue growth (quarter) | +17.3% | +1.3% |
| Net margin (TTM) | 15.2% | 18.7% |
| Net debt / EBITDA | 2.2x | 1.2x |
| Dividend yield | 1.05% | 1.25% |
| Beta | 1.64 | 0.88 |
Caterpillar and Honeywell figures from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026; N/A means that Caterpillar or Honeywell figure is not available, and we never estimate it.
3 key differences between Caterpillar and Honeywell
- Valuation: Caterpillar trades at 23.2x its annual earnings and Honeywell at 11.3x; the market pays more for each dollar of Caterpillar profit, usually because it expects more growth.
- Growth: Caterpillar grew sales +17.3% year on year in its latest quarter, against +1.3% for Honeywell.
- Volatility: Caterpillar stock moves more (beta 1.64) than Honeywell (beta 0.88); the higher the beta, the more it amplifies market swings.
Caterpillar or Honeywell: which fits your profile
- If you want growth: Caterpillar is growing faster today, so it fits better with investors who put business growth first, usually accepting a higher P/E and a bumpier ride.
- If you want income (dividends): Honeywell pays the higher dividend relative to its price.
- If you prefer caution: Honeywell has less debt relative to its profit, which usually gives more room in a bad year.
- If price is what matters most to you: Honeywell trades on the lower P/E; check first whether that is an opportunity or a sign of a business that grows less.
Neither Caterpillar nor Honeywell wins on everything, and owning both is also an option: spreading money across several companies or an index fund reduces what rides on each one.
How Caterpillar and Honeywell make money
Caterpillar (CAT)
Caterpillar builds heavy equipment and engines. Energy & Transportation, its largest segment, sells engines, turbines and generators for data centers, oil and gas, and locomotives. Construction Industries makes excavators and loaders, Resource Industries supplies mining trucks and equipment, and Financial Products provides customer financing through Cat Financial. Full Caterpillar analysis.
Honeywell (HON)
Honeywell is an industrial conglomerate. Aerospace Technologies, its largest segment, sells auxiliary power units, avionics and aftermarket parts for commercial and defense aircraft. It also reports Industrial Automation, with sensors, scanners and software for plants and warehouses, and Building Automation, with controls, security and fire safety systems for buildings. Full Honeywell analysis.
Frequently asked questions: Caterpillar vs Honeywell
Is Caterpillar or Honeywell the better stock?
Choosing between Caterpillar and Honeywell depends on what you are looking for. Caterpillar is growing faster right now, and Honeywell trades on the lower P/E. Fintols does not tell you whether to buy Caterpillar or Honeywell: it shows you the differences so you can decide.
Which pays a higher dividend, Caterpillar or Honeywell?
As of November 4, 2026, Honeywell yields 1.25% and Caterpillar yields 1.05%. Also check how much of their profit Caterpillar and Honeywell pay out: if it is more than they earn, it cannot last.
Which is more expensive, Caterpillar or Honeywell?
On P/E, Caterpillar (23.2x) is more expensive than Honeywell (11.3x) as of November 4, 2026. A higher P/E can be justified if earnings grow faster, so compare it with each company's growth in the table.
Can I own both Caterpillar and Honeywell?
Yes. Many people spread their money across several companies, such as Caterpillar and Honeywell, or use index funds so they do not depend on just one. If you are starting out, decide how much you want to invest and for how long before buying Caterpillar or Honeywell.
More comparisons with Caterpillar or Honeywell
- Caterpillar vs John Deere
- Caterpillar vs Union Pacific
- John Deere vs Honeywell
- Honeywell vs Union Pacific
More companies like Caterpillar and Honeywell: industrials stocks. Educational content about Caterpillar and Honeywell, not investment advice.