CAT’s 16% Single Month Rise Brings Valuations Into Focus – Is GATX a Better Deal?
GATX offers superior revenue growth across key periods, better profitability, and relatively lower valuation.
- GATX’s quarterly revenue growth was 11.0%, vs. CAT’s -9.8%.
- In addition, its Last 12 Months growth came in at 12.1%, ahead of CAT’s -5.6%.
- GATX leads on profitability over both periods – LTM margin of 30.4% and 3-year average of 28.6%.
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Valuation & Performance Overview
| CAT | GATX | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 16.8 | 11.1 | GATX |
| Revenue Growth | |||
| Last Quarter | -9.8% | 11.0% | GATX |
| Last 12 Months | -5.6% | 12.1% | GATX |
| Last 3 Year Average | 6.7% | 8.8% | GATX |
| Operating Margins | |||
| Last 12 Months | 19.2% | 30.4% | GATX |
| Last 3 Year Average | 18.5% | 28.6% | GATX |
| Momentum | |||
| Last 3 Year Return | 154.1% | 71.8% | 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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Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| CAT Return | 27% | 16% | 19% | 26% | 25% | 19% | 209% | <=== | |
| GATX Return | 3% | 28% | 4% | 15% | 31% | 0% | 115% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 8% | 94% | ||
| Monthly Win Rates [3] | |||||||||
| CAT Win Rate | 75% | 58% | 50% | 50% | 67% | 50% | 58% | ||
| GATX Win Rate | 50% | 67% | 58% | 58% | 67% | 50% | 58% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 50% | 61% | <=== | |
| Max Drawdowns [4] | |||||||||
| CAT Max Drawdown | -37% | -0% | -20% | -13% | -6% | -24% | -17% | ||
| GATX Max Drawdown | -36% | -1% | -17% | -5% | -3% | -8% | -12% | <=== | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | ||
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year till date (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