CAT vs. MSFT
CAT (Caterpillar Inc.) and MSFT (Microsoft Corporation) are both stocks. CAT operates in Farm & Heavy Construction Machinery (Industrials), while MSFT operates in Software - Infrastructure (Technology). Over the past 10 years, CAT returned 30.90%/yr vs 24.64%/yr for MSFT. At a 0.31 correlation, their price movements are largely independent.
Performance
CAT vs. MSFT - Performance Comparison
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Returns By Period
In the year-to-date period, CAT achieves a 58.52% return, which is significantly higher than MSFT's -13.46% return. Over the past 10 years, CAT has outperformed MSFT with an annualized return of 30.90%, while MSFT has yielded a comparatively lower 24.64% annualized return.
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%
MSFT
- 1D
- -2.66%
- 1M
- 0.87%
- YTD
- -13.46%
- 6M
- -13.38%
- 1Y
- -10.20%
- 3Y*
- 8.53%
- 5Y*
- 11.60%
- 10Y*
- 24.64%
CAT vs. MSFT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
CAT Caterpillar Inc. | 58.52% | 60.30% | 24.66% | 25.95% | 18.60% | 15.95% | 26.97% | 19.51% | -17.56% | 75.03% |
MSFT Microsoft Corporation | -13.46% | 15.58% | 12.93% | 58.19% | -28.02% | 52.48% | 42.53% | 57.56% | 20.80% | 40.73% |
Correlation
The correlation between CAT and MSFT is 0.04, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.04 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.21 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.25 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.30 |
Correlation (All Time) Calculated using the full available price history since Mar 14, 1986 | 0.31 |
Over the past year, the correlation between CAT and MSFT has dropped to 0.04 - well below their long-term average of 0.31, suggesting their price drivers have been diverging.
Fundamentals
CAT:
$421.21B
MSFT:
$3.10T
CAT:
$20.07
MSFT:
$16.79
CAT:
45.05
MSFT:
24.82
CAT:
2.98
MSFT:
1.74
CAT:
6.00
MSFT:
9.76
CAT:
22.57
MSFT:
7.49
CAT:
$70.76B
MSFT:
$318.27B
CAT:
$23.01B
MSFT:
$217.41B
CAT:
$15.31B
MSFT:
$200.96B
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Return for Risk
CAT vs. MSFT — Risk / Return Rank
CAT
MSFT
CAT vs. MSFT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Caterpillar Inc. (CAT) and Microsoft Corporation (MSFT). 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.
| CAT | MSFT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +5.16 | ||
| Sortino ratioReturn per unit of downside risk | +5.84 | ||
| Omega ratioGain probability vs. loss probability | 1.69 | 0.95 | +0.74 |
| Calmar ratioReturn relative to maximum drawdown | 11.74 | -0.30 | +12.04 |
| Martin ratioReturn relative to average drawdown | 38.98 | -0.64 | +39.61 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| CAT | MSFT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 4.76 | -0.41 | +5.16 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 1.06 | 0.44 | +0.62 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 1.00 | 0.91 | +0.09 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.35 | 0.74 | -0.39 |
Drawdowns
CAT vs. MSFT - Drawdown Comparison
The maximum CAT drawdown since its inception was -73.43%, which is greater than MSFT's maximum drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for CAT and MSFT.
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Drawdown Indicators
| CAT | MSFT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.43% | -69.38% | -4.05% |
Max Drawdown (1Y)Largest decline over 1 year | -13.88% | -33.91% | +20.03% |
Max Drawdown (3Y)Largest decline over 3 years | -34.05% | -33.91% | -0.14% |
Max Drawdown (5Y)Largest decline over 5 years | -34.05% | -37.15% | +3.10% |
Max Drawdown (10Y)Largest decline over 10 years | -43.36% | -37.15% | -6.21% |
Current DrawdownCurrent decline from peak | -3.85% | -22.65% | +18.80% |
Average DrawdownAverage peak-to-trough decline | -19.74% | -21.78% | +2.04% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.17% | 16.07% | -11.90% |
Volatility
CAT vs. MSFT - Volatility Comparison
Caterpillar Inc. (CAT) has a higher volatility of 11.26% compared to Microsoft Corporation (MSFT) at 10.32%. This indicates that CAT's price experiences larger fluctuations and is considered to be riskier than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| CAT | MSFT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.26% | 10.32% | +0.94% |
Volatility (6M)Calculated over the trailing 6-month period | 27.35% | 22.34% | +5.01% |
Volatility (1Y)Calculated over the trailing 1-year period | 34.24% | 25.25% | +8.99% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 30.67% | 26.63% | +4.04% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 30.88% | 27.05% | +3.83% |
Dividends
CAT vs. MSFT - Dividend Comparison
CAT's dividend yield for the trailing twelve months is around 0.67%, less than MSFT's 0.85% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
MSFT Microsoft Corporation | 0.85% | 0.70% | 0.73% | 0.74% | 1.06% | 0.68% | 0.94% | 1.20% | 1.69% | 1.86% | 2.37% | 2.33% |
Financials
CAT vs. MSFT - Financials Comparison
This section allows you to compare key financial metrics between Caterpillar Inc. and Microsoft Corporation. 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. MSFT - 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%.
MSFT - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported a gross profit of 56.06B and revenue of 82.89B. Therefore, the gross margin over that period was 67.6%.
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%.
MSFT - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported an operating income of 38.40B and revenue of 82.89B, resulting in an operating margin of 46.3%.
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%.
MSFT - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Microsoft Corporation reported a net income of 31.78B and revenue of 82.89B, resulting in a net margin of 38.3%.
Frequently Asked Questions
CAT and MSFT have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
CAT has higher volatility (11.26%) compared to MSFT (10.32%). In terms of maximum drawdown, CAT dropped -73.43% vs MSFT's -69.38%.
CAT currently has the higher Sharpe Ratio (4.76 vs -0.41), 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.
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