Caterpillar vs GATX: Which Stock Could Rally?
Caterpillar surged 6.1% during the past Day. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer GATX gives you more. GATX (GATX) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Caterpillar (CAT) stock, suggesting you may be better off investing in GATX
- GATX’s Last 12 Months revenue growth was 9.8%, vs. CAT’s 4.3%.
- In addition, its Last 3-Year Average revenue growth came in at 11.0%, ahead of CAT’s 4.6%.
- GATX leads on profitability over both periods – LTM margin of 30.7% and 3-year average of 29.4%.
These differences become even clearer when you look at the financials side by side. The table highlights how CAT’s fundamentals stack up against those of GATX on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| CAT | GATX | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 29.6 | 11.3 | GATX |
| Revenue Growth | |||
| Last Quarter | 18.0% | 8.6% | CAT |
| Last 12 Months | 4.3% | 9.8% | GATX |
| Last 3 Year Average | 4.6% | 11.0% | GATX |
| Operating Margins | |||
| Last 12 Months | 16.5% | 30.7% | GATX |
| Last 3 Year Average | 18.7% | 29.4% | GATX |
| Momentum | |||
| Last 3 Year Return | 225.1% | 63.0% | CAT |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: CAT Revenue Comparison | GATX Revenue Comparison
See more margin details: CAT Operating Income Comparison | GATX Operating Income Comparison
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See detailed fundamentals on Buy or Sell GATX Stock and Buy or Sell CAT Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| CAT Return | 16% | 19% | 26% | 25% | 60% | 17% | 304% | <=== | |
| GATX Return | 28% | 4% | 15% | 31% | 11% | -1% | 121% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | -7% | 69% | ||
| Monthly Win Rates [3] | |||||||||
| CAT Win Rate | 58% | 50% | 50% | 67% | 50% | 67% | 57% | ||
| GATX Win Rate | 67% | 58% | 58% | 67% | 58% | 67% | 62% | <=== | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 33% | 60% | ||
| Max Drawdowns [4] | |||||||||
| CAT Max Drawdown | -0% | -20% | -13% | -6% | -24% | 0% | -11% | ||
| GATX Max Drawdown | -1% | -17% | -5% | -3% | -8% | -3% | -6% | <=== | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | -9% | ||
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 3/31/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read GATX Dip Buyer Analyses and CAT Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
Still not sure about CAT or GATX? Consider portfolio approach.
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