Caterpillar vs Union Pacific (CAT vs UNP)

Caterpillar (CAT) vs Union Pacific (UNP) in plain English: P/E, growth, margins, debt and dividend side by side, key differences and which fits each investor profile.

Caterpillar (CAT) and Union Pacific (UNP) compete in industrials. Here are Caterpillar and Union Pacific 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 Union Pacific.

Caterpillar vs Union Pacific: the figures

Caterpillar and Union Pacific figures from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026; N/A means that Caterpillar or Union Pacific figure is not available, and we never estimate it.

3 key differences between Caterpillar and Union Pacific

1. Profitability: for every 100 of sales, Union Pacific keeps 28.9 as net profit and Caterpillar keeps 15.2.
2. Volatility: Caterpillar stock moves more (beta 1.64) than Union Pacific (beta 0.84); the higher the beta, the more it amplifies market swings.
3. Dividend: Union Pacific yields 1.87% at today's price and Caterpillar yields 1.05%.

Caterpillar or Union Pacific: 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): Union Pacific pays the higher dividend relative to its price.
• If you prefer caution: Union Pacific has less debt relative to its profit, which usually gives more room in a bad year.
• If price is what matters most to you: Caterpillar 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 Union Pacific 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 Union Pacific 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.

Union Pacific (UNP)

Union Pacific runs a large freight railroad across the western United States and earns money hauling goods. It splits freight revenue into three groups: Bulk, including grain, fertilizer and coal; Industrial, such as chemicals, plastics, metals and building materials; and Premium, covering intermodal containers and finished vehicles, with links to Mexico and Canada. Full Union Pacific analysis.

Frequently asked questions: Caterpillar vs Union Pacific

Is Caterpillar or Union Pacific the better stock?

Choosing between Caterpillar and Union Pacific depends on what you are looking for. Caterpillar is growing faster right now, and Caterpillar trades on the lower P/E. Fintols does not tell you whether to buy Caterpillar or Union Pacific: it shows you the differences so you can decide.

Which pays a higher dividend, Caterpillar or Union Pacific?

As of November 4, 2026, Union Pacific yields 1.87% and Caterpillar yields 1.05%. Also check how much of their profit Caterpillar and Union Pacific pay out: if it is more than they earn, it cannot last.

Which is more expensive, Caterpillar or Union Pacific?

On P/E, Union Pacific (24.1x) is more expensive than Caterpillar (23.2x) 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 Union Pacific?

Yes. Many people spread their money across several companies, such as Caterpillar and Union Pacific, 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 Union Pacific.

More comparisons with Caterpillar or Union Pacific

• Caterpillar vs John Deere
• Caterpillar vs Honeywell
• John Deere vs Union Pacific
• Honeywell vs Union Pacific

More companies like Caterpillar and Union Pacific: industrials stocks. Educational content about Caterpillar and Union Pacific, not investment advice.