With CAT Up 16% in a Month, Is It Time to Compare It Against GATX?
GATX (GATX) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Caterpillar (CAT), suggesting you may be better off investing in GATX
- GATX’s quarterly revenue growth was 11.3%, vs. CAT’s -0.7%.
- In addition, its Last 12 Months revenue growth came in at 11.7%, ahead of CAT’s -4.9%.
- GATX leads on profitability over both periods – LTM margin of 31.2% and 3-year average of 29.0%.
CAT manufactures and sells construction, mining equipment, engines, turbines, and offers financing solutions across construction, resource, energy, and transportation industries. GATX leases tank and freight railcars and locomotives globally for petroleum, chemical, food/agriculture, and transportation industries, managing a fleet of around 147,000 railcars.
Valuation & Performance Overview
| CAT | GATX | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 19.6 | 12.0 | GATX |
| Revenue Growth | |||
| Last Quarter | -0.7% | 11.3% | GATX |
| Last 12 Months | -4.9% | 11.7% | GATX |
| Last 3 Year Average | 5.8% | 9.8% | GATX |
| Operating Margins | |||
| Last 12 Months | 18.2% | 31.2% | GATX |
| Last 3 Year Average | 18.8% | 29.0% | GATX |
| Momentum | |||
| Last 3 Year Return | 209.6% | 115.9% | 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
But do these numbers tell the full story? Read Buy or Sell GATX Stock to see if GATX’s edge holds up under the hood or if Caterpillar still has cards to play (see Buy or Sell CAT Stock).
- Caterpillar Stock To $404?
- GATX or Caterpillar: Which Stock Has More Upside?
- A Decade of Rewards: Caterpillar Stock Returns $57 Bil to Investors
- CAT Leaps 16% In One Month, Now Is Not The Time To Buy The Stock
- CAT Up 16% in One Month: Is It Outperforming Its Rivals?
- CAT Stock Up 12% after 7-Day Win Streak
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
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| CAT Return | 27% | 16% | 19% | 26% | 25% | 34% | 256% | <=== | |
| GATX Return | 3% | 28% | 4% | 15% | 31% | 14% | 140% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 14% | 106% | ||
| 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% | 62% | 63% | <=== | |
| 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 up to 10/1/2025 (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.