Honeywell International Inc. vs Caterpillar Inc.
CAT wins the Tale of the Tape 6–3.
🏆 Tale of the Tape
Green = winner in each category. Higher is better except P/E (lower = cheaper).
Rolling Correlation
Moderately correlated — some diversification benefit from holding both.
Fundamentals
| Metric | HON | CAT |
|---|---|---|
| Market Cap | $150.7B | $403.4B |
| P/E Ratio | 38.0x | 43.7x |
| Forward P/E | 20.8x | 29.4x |
| P/B | 11.09x | 21.62x |
| Dividend Yield | 2.00% | 0.69% |
| Beta | 0.81 | 1.63 |
Quantitative Metrics
| Metric | HON | CAT |
|---|---|---|
| DCF Fair Value | $88.96 | $159.35 |
| DCF Upside | -61.9% | -79.9% |
| Piotroski F | 5/9 | 6/9 |
| Altman Z | 3.42 | 5.09 |
| Beneish M | -2.58 | -2.43 |
| FCF Yield | 3.30% | 1.91% |
| Net Debt/EBITDA | 1.8x | 1.4x |
| ROIC | 10.7% | 15.3% |
| WACC | 9.5% | 13.3% |
| ROIC – WACC | 1.2pp | 2.0pp |
| Gross Margin | 36.9% | 31.8% |
| Net Margin | 12.6% | 13.1% |
| Rev Growth YoY | 7.8% | 4.3% |
| Sharpe (1Y) | 0.97 | 3.12 |
| Max Drawdown 3Y | — | — |
| FCF Payout Ratio | 55% | 37% |
HON Price
CAT Price
ETF Exposure
HON found in:
CAT found in:
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Quant metrics computed from financial statements and 1,200+ trading days. Correlation is Pearson coefficient on daily log returns. Not investment advice.
HON vs CAT: Head-to-Head Analysis
Honeywell International Inc. (HON) and Caterpillar Inc. (CAT) represent two companies in the Industrials sector. In our quantitative Tale of the Tape scoring, CAT leads 6–3 across nine fundamental and risk metrics including profitability, valuation, capital efficiency, and financial health.
In terms of capital efficiency, HON generates a return on invested capital (ROIC) of 10.7% compared to CAT's 15.3%. This suggests CAT is more effective at deploying capital to generate shareholder returns.
The 252-day rolling correlation between HON and CAT is 0.416, indicating moderate co-movement, with some diversification value from holding both in a portfolio context.
HON appears in 30 ETFs tracked by SecuritiesDB, while CAT appears in 38 ETFs. Investors holding broad-market ETFs may already have indirect exposure to both stocks.
Frequently Asked Questions
Which stock is the better investment, HON or CAT?
Our quantitative analysis compares HON and CAT across nine fundamental dimensions. CAT wins the Tale of the Tape 6–3. However, stock selection depends on your individual risk tolerance, time horizon, and portfolio context. These metrics are computed from SEC filings and market data — they are not investment recommendations.
Are HON and CAT correlated?
The 252-day correlation between HON and CAT is 0.416. They show moderate correlation — partially diversifying.
How is the Tale of the Tape scored?
The Tale of the Tape compares both stocks across nine categories: profitability (net margin), valuation (P/E), efficiency (ROIC), health (Piotroski F-Score), safety (Altman Z-Score), growth (revenue YoY), risk (Sharpe ratio), leverage (debt-to-equity), and cash generation (FCF yield). The stock that wins more categories takes the overall score. Lower P/E and lower debt-to-equity count as wins.