CAT vs. CMI
CAT (Caterpillar Inc.) and CMI (Cummins Inc.) are both stocks. Both are in the Industrials sector — CAT in Farm & Heavy Construction Machinery, CMI in Specialty Industrial Machinery. Over the past 10 years, CAT returned 33.19%/yr vs 23.85%/yr for CMI. A 0.55 correlation means they provide meaningful diversification when combined.
Performance
CAT vs. CMI - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, CAT achieves a 79.21% return, which is significantly higher than CMI's 42.94% return. Over the past 10 years, CAT has outperformed CMI with an annualized return of 33.19%, while CMI has yielded a comparatively lower 23.85% annualized return.
CAT
- 1D
- 3.70%
- 1M
- 16.18%
- YTD
- 79.21%
- 6M
- 76.27%
- 1Y
- 186.63%
- 3Y*
- 65.85%
- 5Y*
- 39.22%
- 10Y*
- 33.19%
CMI
- 1D
- 1.13%
- 1M
- 13.35%
- YTD
- 42.94%
- 6M
- 40.51%
- 1Y
- 134.37%
- 3Y*
- 49.36%
- 5Y*
- 27.91%
- 10Y*
- 23.85%
CAT vs. CMI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
CAT Caterpillar Inc. | 79.21% | 60.30% | 24.66% | 25.95% | 18.60% | 15.95% | 26.97% | 19.51% | -17.56% | 75.03% |
CMI Cummins Inc. | 42.94% | 49.36% | 48.92% | 1.72% | 14.09% | -1.68% | 30.50% | 38.04% | -22.06% | 32.74% |
Correlation
The correlation between CAT and CMI is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.76 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.68 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.71 |
Correlation (All Time) Calculated using the full available price history since Dec 18, 1984 | 0.55 |
Over the past year, CAT and CMI have become more correlated (0.76) than their long-term average of 0.55, meaning their price movements have been converging.
Fundamentals
CAT:
$476.18B
CMI:
$100.62B
CAT:
$20.07
CMI:
$19.27
CAT:
50.93
CMI:
37.62
CAT:
3.37
CMI:
0.42
CAT:
6.78
CMI:
2.97
CAT:
25.52
CMI:
8.15
CAT:
$70.76B
CMI:
$33.89B
CAT:
$23.01B
CMI:
$8.60B
CAT:
$15.31B
CMI:
$4.87B
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
CAT vs. CMI — Risk / Return Rank
CAT
CMI
CAT vs. CMI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Caterpillar Inc. (CAT) and Cummins Inc. (CMI). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| CAT | CMI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.31 | ||
| Sortino ratioReturn per unit of downside risk | +1.39 | ||
| Omega ratioGain probability vs. loss probability | 1.73 | 1.59 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 13.53 | 8.88 | +4.65 |
| Martin ratioReturn relative to average drawdown | 44.33 | 31.43 | +12.90 |
Loading charts...
Drawdowns
CAT vs. CMI - Drawdown Comparison
The maximum CAT drawdown since its inception was -73.43%, roughly equal to the maximum CMI drawdown of -75.66%. Use the drawdown chart below to compare losses from any high point for CAT and CMI.
Loading charts...
Drawdown Indicators
| CAT | CMI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.43% | -75.66% | +2.23% |
Max Drawdown (1Y)Largest decline over 1 year | -13.88% | -15.23% | +1.35% |
Max Drawdown (3Y)Largest decline over 3 years | -34.05% | -30.48% | -3.57% |
Max Drawdown (5Y)Largest decline over 5 years | -34.05% | -30.48% | -3.57% |
Max Drawdown (10Y)Largest decline over 10 years | -43.36% | -44.05% | +0.69% |
Current DrawdownCurrent decline from peak | 0.00% | 0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -19.72% | -22.21% | +2.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.23% | 4.29% | -0.06% |
Volatility
CAT vs. CMI - Volatility Comparison
The current volatility for Caterpillar Inc. (CAT) is 12.90%, while Cummins Inc. (CMI) has a volatility of 13.62%. This indicates that CAT experiences smaller price fluctuations and is considered to be less risky than CMI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| CAT | CMI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.90% | 13.62% | -0.72% |
Volatility (6M)Calculated over the trailing 6-month period | 27.80% | 28.32% | -0.52% |
Volatility (1Y)Calculated over the trailing 1-year period | 35.49% | 33.89% | +1.60% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 30.84% | 28.22% | +2.62% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 31.03% | 28.37% | +2.66% |
Dividends
CAT vs. CMI - Dividend Comparison
CAT's dividend yield for the trailing twelve months is around 0.59%, less than CMI's 1.10% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CAT Caterpillar Inc. | 0.59% | 1.02% | 1.49% | 1.69% | 1.93% | 2.07% | 2.26% | 2.56% | 2.58% | 1.97% | 3.32% | 4.33% |
CMI Cummins Inc. | 1.10% | 1.50% | 2.01% | 2.71% | 2.49% | 2.57% | 2.33% | 2.74% | 3.32% | 2.38% | 2.93% | 3.99% |
Financials
CAT vs. CMI - Financials Comparison
This section allows you to compare key financial metrics between Caterpillar Inc. and Cummins Inc.. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
CAT vs. CMI - Profitability Comparison
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%.
CMI - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Cummins Inc. reported a gross profit of 2.24B and revenue of 8.40B. Therefore, the gross margin over that period was 26.7%.
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%.
CMI - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Cummins Inc. reported an operating income of 949.00M and revenue of 8.40B, resulting in an operating margin of 11.3%.
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%.
CMI - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Cummins Inc. reported a net income of 654.00M and revenue of 8.40B, resulting in a net margin of 7.8%.
Frequently Asked Questions
CAT and CMI have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
CMI has higher volatility (13.62%) compared to CAT (12.90%). In terms of maximum drawdown, CAT dropped -73.43% vs CMI's -75.66%.
CAT currently has the higher Sharpe Ratio (5.30 vs 4.00), 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.
Find the right allocation for CAT and CMI
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer