Caterpillar vs Honeywell International: Business Model & Financial Comparison 2026
Caterpillar · Industrials / Farm & Heavy Construction Machinery·Honeywell International · Industrials / Conglomerates
Financial Comparison
| Metric | CATCaterpillar | HONHoneywell International |
|---|---|---|
| Market Cap | $325.76B | $149.54B |
| Revenue (TTM) | $67.59B | $37.44B |
| Revenue Growth | 18.0% | -3.3% |
| Gross Margin | 28.8% | 36.9% |
| Operating Margin | 16.0% | 15.4% |
| Net Margin | 13.1% | 12.6% |
| Return on Equity | 43.5% | 26.1% |
| P/E (Trailing) | 37.1x | 33.9x |
| P/E (Forward) | 25.1x | 20.5x |
| Free Cash Flow | $5.84B | $4.66B |
| Cash | $9.33B | $12.93B |
| Total Debt | $44.06B | $35.56B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
Caterpillar
Caterpillar Inc. stands as a leading company in Industrials. Generating $67.59 billion in annual revenue (growing 18.0% year-over-year) and carrying a market capitalization of $330.43 billion, the company has cemented its position as a foundational player in the global Farm & Heavy Construction Machinery landscape. Under the leadership of its leadership team, Caterpillar Inc. continues to execute on a multi-year strategic vision that balances gro…
Full Caterpillar analysis →Honeywell International
Honeywell International Inc. stands as a leading company in Industrials. Generating $37.44 billion in annual revenue (growing -3.3% year-over-year) and carrying a market capitalization of $160.64 billion, the company has cemented its position as a foundational player in the global Conglomerates landscape. Under the leadership of its leadership team, Honeywell International Inc. continues to execute on a multi-year strategic vision that balances g…
Full Honeywell International analysis →SWOT Analysis Comparison
Strengths
Caterpillar
- With a market capitalization of $330.43B, Caterpillar Inc. is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access tha
- Caterpillar Inc. maintains a gross margin of 28.8% and operating margin of 16.0%, demonstrating consistent operational execution and cost discipline in a competitive market.
- Revenue grew 18.0% year-over-year to $67.59B, indicating strong demand for Caterpillar Inc.'s products and services and outperformance relative to many industry peers.
Honeywell International
- With a market capitalization of $160.64B, Honeywell International Inc. is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capita
- Honeywell International Inc. maintains a gross margin of 36.9% and operating margin of 15.4%, demonstrating consistent operational execution and cost discipline in a competitive market.
- A return on equity of 26.1% demonstrates that Honeywell International Inc. generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
Weaknesses
Caterpillar
- With a debt-to-equity ratio of 206.7, Caterpillar Inc. carries significant debt relative to equity. While manageable given its cash flow, elevated leverage limits financial flexibility and increases v
- With 118,000 employees globally, Caterpillar Inc. faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, nimble
Honeywell International
- With a debt-to-equity ratio of 236.6, Honeywell International Inc. carries significant debt relative to equity. While manageable given its cash flow, elevated leverage limits financial flexibility and
- Year-over-year revenue declined 3.3%, raising questions about demand for Honeywell International Inc.'s core offerings and requiring management to articulate a credible recovery path.
- With 101,000 employees globally, Honeywell International Inc. faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that sma
Opportunities
Caterpillar
- Caterpillar Inc. operates in the Farm & Heavy Construction Machinery segment of the broader Industrials sector, which represents a $8.4 trillion global industrial market. Even modest share gains in th
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Caterpi
- With $9.33B in cash and strong free cash flow generation, Caterpillar Inc. is well-positioned to pursue strategic acquisitions that expand its capabilities, customer base, or geographic reach.
Honeywell International
- Honeywell International Inc. operates in the Conglomerates segment of the broader Industrials sector, which represents a $8.4 trillion global industrial market. Even modest share gains in this environ
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Honeywe
- With $12.93B in cash and strong free cash flow generation, Honeywell International Inc. is well-positioned to pursue strategic acquisitions that expand its capabilities, customer base, or geographic r
Threats
Caterpillar
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Caterpillar Inc.'s revenue is not fully insulated from macroeconomic cycles, and a recession
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Caterpillar Inc.'s
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
Honeywell International
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Honeywell International Inc.'s revenue is not fully insulated from macroeconomic cycles, and
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Honeywell Internati
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
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Open Comparison ToolCaterpillar vs Honeywell International: FAQ
- Is Caterpillar bigger than Honeywell International?
- By market capitalization, Caterpillar is larger at $325.76B vs Honeywell International's $149.54B.
- Which has better profit margins — Caterpillar or Honeywell International?
- Caterpillar has higher net profit margins (13.1%) compared to Honeywell International (12.6%). Gross and operating margins are compared in the table above.
- What sectors do Caterpillar and Honeywell International operate in?
- Caterpillar operates in the Industrials sector (Farm & Heavy Construction Machinery). Honeywell International operates in the Industrials sector (Conglomerates).
- How does Caterpillar's revenue compare to Honeywell International's?
- Caterpillar generates $67.59B in annual revenue (TTM) while Honeywell International generates $37.44B. Caterpillar is the larger company by revenue as of 2026.