Xylem Inc. vs Caterpillar Inc.
XYL and CAT are evenly matched across key metrics.
🏆 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 | XYL | CAT |
|---|---|---|
| Market Cap | $26.0B | $403.4B |
| P/E Ratio | 27.2x | 43.7x |
| Forward P/E | 18.0x | 29.4x |
| P/B | 2.32x | 21.62x |
| Dividend Yield | 1.57% | 0.69% |
| Beta | 1.08 | 1.63 |
Quantitative Metrics
| Metric | XYL | CAT |
|---|---|---|
| DCF Fair Value | $97.93 | $159.35 |
| DCF Upside | -24.0% | -79.9% |
| Piotroski F | 6/9 | 6/9 |
| Altman Z | 4.35 | 5.09 |
| Beneish M | -2.51 | -2.43 |
| FCF Yield | 2.91% | 1.91% |
| Net Debt/EBITDA | -0.0x | 1.4x |
| ROIC | 6.5% | 15.3% |
| WACC | 11.7% | 13.3% |
| ROIC – WACC | -5.2pp | 2.0pp |
| Gross Margin | 38.5% | 31.8% |
| Net Margin | 10.6% | 13.1% |
| Rev Growth YoY | 5.5% | 4.3% |
| Sharpe (1Y) | 0.62 | 3.12 |
| Max Drawdown 3Y | — | — |
| FCF Payout Ratio | 43% | 37% |
XYL Price
CAT Price
ETF Exposure
XYL 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.
XYL vs CAT: Head-to-Head Analysis
Xylem Inc. (XYL) and Caterpillar Inc. (CAT) represent two companies in the Industrials sector. Our quantitative Tale of the Tape shows these companies are evenly matched across profitability, valuation, and risk metrics.
In terms of capital efficiency, XYL generates a return on invested capital (ROIC) of 6.5% 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 XYL and CAT is 0.464, indicating moderate co-movement, with some diversification value from holding both in a portfolio context.
XYL appears in 28 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, XYL or CAT?
Our quantitative analysis compares XYL and CAT across nine fundamental dimensions. XYL and CAT are evenly matched across key metrics. 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 XYL and CAT correlated?
The 252-day correlation between XYL and CAT is 0.464. 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.