CATERPILLAR INC vs PARKER-HANNIFIN CORPORATION, two Industrial Machinery stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Caterpillar and Parker-Hannifin both sell into the industrial cycle, and the income statements show two ways of riding it: Parker keeps a wider 22% operating margin to Caterpillar's 18, and a 17% net margin to Caterpillar's 13, the reward for a parts-heavy mix over big yellow iron. Caterpillar answers with scale on capital, a 51% return on equity to Parker's 24, though the gap shrinks at the asset line, 10% to 11%, which says the equity base is doing the lifting. The market pays up for the bigger name, near 45 times earnings to Parker's 33. Parker also throws off more free cash, a 3.2% yield to Caterpillar's 2.2, and pays slightly more in dividends. Caterpillar is priced for the heavier swing; Parker for the steadier grind.
Comparison updated 2026-06-15.
| Metric | CAT | PH |
|---|---|---|
| Price | $951.67 | $960.77 |
| Market cap | $443.3B | $123.0B |
| Sector | Industrial Machinery | Industrial Machinery |
| Stage | Mature | Mature |
| P/E | 47.4 | 35.4 |
| P/B | 23.76 | 8.41 |
| P/S | 6.27 | 5.86 |
| EV/EBITDA | 31.4 | 24.3 |
| Revenue growth | +12.3% | +6.1% |
| Operating margin | 17.7% | 22.4% |
| Net margin | 13.3% | 16.6% |
| Return on equity | 50.5% | 23.8% |
| Return on assets | 9.9% | 11.3% |
| Return on invested capital | 49.4% | 23.1% |
| FCF yield | 2.1% | 3.0% |
| Dividend yield | 0.6% | 0.7% |
| Debt / equity | 0.00 | 0.14 |
| Current ratio | 1.35 | 1.13 |
| Altman Z (solvency) | 5.46 | 6.52 |
| Piotroski F (quality) | 6 / 9 | 8 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.