Caterpillar vs Lockheed Martin: Business Model & Financial Comparison 2026
Caterpillar · Industrials / Farm & Heavy Construction Machinery·Lockheed Martin · Industrials / Aerospace & Defense
Financial Comparison
| Metric | CATCaterpillar | LMTLockheed Martin |
|---|---|---|
| Market Cap | $326.16B | $149.83B |
| Revenue (TTM) | $67.59B | $75.05B |
| Revenue Growth | 18.0% | 9.1% |
| Gross Margin | 28.8% | 10.2% |
| Operating Margin | 16.0% | 9.0% |
| Net Margin | 13.1% | 6.7% |
| Return on Equity | 43.5% | 76.9% |
| P/E (Trailing) | 37.1x | 30.1x |
| P/E (Forward) | 25.2x | 20.3x |
| Free Cash Flow | $5.84B | $5.28B |
| Cash | $9.33B | $4.12B |
| Total Debt | $44.06B | $22.77B |
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 →Lockheed Martin
Lockheed Martin Corporation stands as a leading company in Industrials. Generating $75.05 billion in annual revenue (growing 9.1% year-over-year) and carrying a market capitalization of $151.57 billion, the company has cemented its position as a foundational player in the global Aerospace & Defense landscape. Under the leadership of its leadership team, Lockheed Martin Corporation continues to execute on a multi-year strategic vision that balance…
Full Lockheed Martin 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.
Lockheed Martin
- With a market capitalization of $151.57B, Lockheed Martin Corporation is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital
- A return on equity of 76.9% demonstrates that Lockheed Martin Corporation generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
- Lockheed Martin Corporation generated $5.28B in free cash flow, providing financial flexibility to invest in growth initiatives, return capital to shareholders, or strengthen the balance sheet.
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
Lockheed Martin
- With a debt-to-equity ratio of 338.8, Lockheed Martin Corporation carries significant debt relative to equity. While manageable given its cash flow, elevated leverage limits financial flexibility and
- With 123,000 employees globally, Lockheed Martin Corporation faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smal
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.
Lockheed Martin
- Lockheed Martin Corporation operates in the Aerospace & Defense segment of the broader Industrials sector, which represents a $8.4 trillion global industrial market. Even modest share gains in this en
- 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 Lockhee
- Earnings growth of 161.0% YoY demonstrates Lockheed Martin Corporation's ability to convert revenue growth into shareholder value. Analysts project continued earnings expansion driven by operating lev
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
Lockheed Martin
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Lockheed Martin Corporation'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 Lockheed Martin Cor
- 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 Lockheed Martin: FAQ
- Is Caterpillar bigger than Lockheed Martin?
- By market capitalization, Caterpillar is larger at $326.16B vs Lockheed Martin's $149.83B.
- Which has better profit margins — Caterpillar or Lockheed Martin?
- Caterpillar has higher net profit margins (13.1%) compared to Lockheed Martin (6.7%). Gross and operating margins are compared in the table above.
- What sectors do Caterpillar and Lockheed Martin operate in?
- Caterpillar operates in the Industrials sector (Farm & Heavy Construction Machinery). Lockheed Martin operates in the Industrials sector (Aerospace & Defense).
- How does Caterpillar's revenue compare to Lockheed Martin's?
- Caterpillar generates $67.59B in annual revenue (TTM) while Lockheed Martin generates $75.05B. Lockheed Martin is the larger company by revenue as of 2026.