AMZN vs. CAT

Last updated Jun 6, 2026

AMZN (Amazon.com, Inc) and CAT (Caterpillar Inc.) are both stocks. AMZN operates in Internet Retail (Consumer Cyclical), while CAT operates in Farm & Heavy Construction Machinery (Industrials). Over the past 10 years, AMZN returned 21.13%/yr vs 30.90%/yr for CAT. At a 0.31 correlation, their price movements are largely independent.

Performance

AMZN vs. CAT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Amazon.com, Inc (AMZN) and Caterpillar Inc. (CAT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AMZN achieves a 6.59% return, which is significantly lower than CAT's 58.52% return. Over the past 10 years, AMZN has underperformed CAT with an annualized return of 21.13%, while CAT has yielded a comparatively higher 30.90% annualized return.

AMZN

• 1D: -3.06%
• 1M: -10.53%
• YTD: 6.59%
• 6M: 7.19%
• 1Y: 18.33%
• 3Y*: 24.79%
• 5Y*: 8.94%
• 10Y*: 21.13%

CAT

• 1D: -3.85%
• 1M: -2.44%
• YTD: 58.52%
• 6M: 50.56%
• 1Y: 161.94%
• 3Y*: 61.01%
• 5Y*: 32.30%
• 10Y*: 30.90%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AMZN vs. CAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AMZN Amazon.com, Inc	6.59%	5.21%	44.39%	80.88%	-49.62%	2.38%	76.26%	23.03%	28.43%	55.96%
CAT Caterpillar Inc.	58.52%	60.30%	24.66%	25.95%	18.60%	15.95%	26.97%	19.51%	-17.56%	75.03%

Correlation

The correlation between AMZN and CAT is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.29
Correlation (10Y) Calculated over the trailing 10-year period	0.29
Correlation (All Time) Calculated using the full available price history since May 16, 1997	0.31

The correlation between AMZN and CAT shifts across timeframes, from 0.21 (1 year) to 0.31 (all time), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap AMZN : $2.68T CAT : $421.21B
EPS AMZN : $8.37 CAT : $20.07
PE Ratio AMZN : 29.39 CAT : 45.05
PEG Ratio AMZN : 0.71 CAT : 2.98
PS Ratio AMZN : 3.59 CAT : 6.00
PB Ratio AMZN : 6.05 CAT : 22.57
Total Revenue (TTM) AMZN : $742.78B CAT : $70.76B
Gross Profit (TTM) AMZN : $348.59B CAT : $23.01B
EBITDA (TTM) AMZN : $152.71B CAT : $15.31B

Return for Risk

AMZN vs. CAT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AMZN

AMZN Risk / Return Rank: 58
AMZN Sharpe Ratio Rank: 61
AMZN Sortino Ratio Rank: 55
AMZN Omega Ratio Rank: 54
AMZN Calmar Ratio Rank: 59
AMZN Martin Ratio Rank: 60

CAT

CAT Risk / Return Rank: 98
CAT Sharpe Ratio Rank: 98
CAT Sortino Ratio Rank: 98
CAT Omega Ratio Rank: 97
CAT Calmar Ratio Rank: 98
CAT Martin Ratio Rank: 98

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AMZN vs. CAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Amazon.com, Inc (AMZN) and Caterpillar Inc. (CAT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	AMZN	CAT	Difference
Sharpe ratio: Return per unit of total volatility	0.61	4.76	-4.15
Sortino ratio: Return per unit of downside risk	1.04	5.44	-4.40
Omega ratio: Gain probability vs. loss probability	1.13	1.69	-0.56
Calmar ratio: Return relative to maximum drawdown	0.85	11.74	-10.89
Martin ratio: Return relative to average drawdown	2.03	38.98	-36.95
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AMZN vs. CAT - Sharpe Ratio Comparison

The current AMZN Sharpe Ratio is 0.61, which is lower than the CAT Sharpe Ratio of 4.76. The chart below compares the historical Sharpe Ratios of AMZN and CAT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AMZN	CAT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.61	4.76	-4.15
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.25	1.06	-0.80
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.65	1.00	-0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.56	0.35	+0.21

Drawdowns

AMZN vs. CAT - Drawdown Comparison

The maximum AMZN drawdown since its inception was -94.40%, which is greater than CAT's maximum drawdown of -73.43%. Use the drawdown chart below to compare losses from any high point for AMZN and CAT.

Drawdown Indicators

	AMZN	CAT	Difference
Max Drawdown Largest peak-to-trough decline	-94.40%	-73.43%	-20.97%
Max Drawdown (1Y) Largest decline over 1 year	-21.74%	-13.88%	-7.86%
Max Drawdown (3Y) Largest decline over 3 years	-30.88%	-34.05%	+3.17%
Max Drawdown (5Y) Largest decline over 5 years	-56.15%	-34.05%	-22.10%
Max Drawdown (10Y) Largest decline over 10 years	-56.15%	-43.36%	-12.79%
Current Drawdown Current decline from peak	-10.53%	-3.85%	-6.68%
Average Drawdown Average peak-to-trough decline	-28.12%	-19.74%	-8.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	9.05%	4.17%	+4.88%

Volatility

AMZN vs. CAT - Volatility Comparison

The current volatility for Amazon.com, Inc (AMZN) is 7.85%, while Caterpillar Inc. (CAT) has a volatility of 11.26%. This indicates that AMZN experiences smaller price fluctuations and is considered to be less risky than CAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AMZN	CAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.85%	11.26%	-3.41%
Volatility (6M) Calculated over the trailing 6-month period	20.63%	27.35%	-6.72%
Volatility (1Y) Calculated over the trailing 1-year period	30.18%	34.24%	-4.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.52%	30.67%	+4.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.47%	30.88%	+1.59%

Dividends

AMZN vs. CAT - Dividend Comparison

AMZN has not paid dividends to shareholders, while CAT's dividend yield for the trailing twelve months is around 0.67%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AMZN Amazon.com, Inc	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
CAT Caterpillar Inc.	0.67%	1.02%	1.49%	1.69%	1.93%	2.07%	2.26%	2.56%	2.58%	1.97%	3.32%	4.33%

Financials

AMZN vs. CAT - Profitability Comparison

The chart below illustrates the profitability comparison between Amazon.com, Inc and Caterpillar Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

AMZN - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Amazon.com, Inc reported a gross profit of 66.77B and revenue of 181.52B. Therefore, the gross margin over that period was 36.8%.

CAT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Caterpillar Inc. reported a gross profit of 6.11B and revenue of 17.42B. Therefore, the gross margin over that period was 35.1%.

AMZN - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Amazon.com, Inc reported an operating income of 23.85B and revenue of 181.52B, resulting in an operating margin of 13.1%.

CAT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Caterpillar Inc. reported an operating income of 3.09B and revenue of 17.42B, resulting in an operating margin of 17.7%.

AMZN - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Amazon.com, Inc reported a net income of 30.26B and revenue of 181.52B, resulting in a net margin of 16.7%.

CAT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Caterpillar Inc. reported a net income of 2.55B and revenue of 17.42B, resulting in a net margin of 14.6%.

Frequently Asked Questions

Can I hold both AMZN and CAT in my portfolio?

AMZN and CAT have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AMZN or CAT?

CAT has higher volatility (11.26%) compared to AMZN (7.85%). In terms of maximum drawdown, AMZN dropped -94.40% vs CAT's -73.43%.

Which has better risk-adjusted returns?

CAT currently has the higher Sharpe Ratio (4.76 vs 0.61), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.