CAT vs. PANW
CAT (Caterpillar Inc.) and PANW (Palo Alto Networks, Inc.) are both stocks. CAT operates in Farm & Heavy Construction Machinery (Industrials), while PANW operates in Software - Infrastructure (Technology). Over the past 10 years, CAT returned 29.78%/yr vs 32.08%/yr for PANW. At a 0.22 correlation, their price movements are largely independent.
Performance
CAT vs. PANW - Performance Comparison
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Returns By Period
In the year-to-date period, CAT achieves a 51.79% return, which is significantly lower than PANW's 89.28% return. Over the past 10 years, CAT has underperformed PANW with an annualized return of 29.78%, while PANW has yielded a comparatively higher 32.08% annualized return.
CAT
- 1D
- -1.63%
- 1M
- -12.16%
- 6M
- 34.42%
- YTD
- 51.79%
- 1Y
- 111.57%
- 3Y*
- 51.81%
- 5Y*
- 34.91%
- 10Y*
- 29.78%
- ALL TIME*
- 10.57%
PANW
- 1D
- -2.79%
- 1M
- 21.16%
- 6M
- 85.79%
- YTD
- 89.28%
- 1Y
- 78.09%
- 3Y*
- 41.95%
- 5Y*
- 39.80%
- 10Y*
- 32.08%
- ALL TIME*
- 29.66%
CAT vs. PANW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
CAT Caterpillar Inc. | 51.79% | 60.30% | 24.66% | 25.95% | 18.60% | 15.95% | 26.97% | 19.51% | -17.56% | 75.03% |
PANW Palo Alto Networks, Inc. | 89.28% | 1.23% | 23.41% | 111.32% | -24.81% | 56.66% | 53.68% | 22.78% | 29.95% | 15.91% |
Correlation
The correlation between CAT and PANW is 0.01, 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 | 0.01 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.18 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.20 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.22 |
Correlation (All Time) Calculated using the full available price history since Jul 20, 2012 | 0.22 |
Over the past year, the correlation between CAT and PANW has dropped to 0.01 - well below their long-term average of 0.22, suggesting their price drivers have been diverging.
Fundamentals
CAT:
$398.13B
PANW:
$237.62B
CAT:
$20.10
PANW:
$1.17
CAT:
42.99
PANW:
297.34
CAT:
2.84
PANW:
0.02
CAT:
5.72
PANW:
23.63
CAT:
21.58
PANW:
9.38
CAT:
$70.76B
PANW:
$10.61B
CAT:
$23.01B
PANW:
$7.63B
CAT:
$15.31B
PANW:
$1.33B
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Return for Risk
CAT vs. PANW — Risk / Return Rank
CAT
PANW
CAT vs. PANW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Caterpillar Inc. (CAT) and Palo Alto Networks, Inc. (PANW). 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 | PANW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.05 | ||
| Sortino ratioReturn per unit of downside risk | +1.15 | ||
| Omega ratioGain probability vs. loss probability | 1.45 | 1.32 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 6.00 | 2.18 | +3.82 |
| Martin ratioReturn relative to average drawdown | 21.63 | 4.95 | +16.68 |
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Drawdowns
CAT vs. PANW - Drawdown Comparison
The maximum CAT drawdown since its inception was -73.43%, which is greater than PANW's maximum drawdown of -47.98%. Use the drawdown chart below to compare losses from any high point for CAT and PANW.
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Drawdown Indicators
| CAT | PANW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.43% | -47.98% | -25.45% |
Max Drawdown (1Y)Largest decline over 1 year | -18.69% | -36.01% | +17.32% |
Max Drawdown (3Y)Largest decline over 3 years | -34.05% | -36.01% | +1.96% |
Max Drawdown (5Y)Largest decline over 5 years | -34.05% | -36.01% | +1.96% |
Max Drawdown (10Y)Largest decline over 10 years | -43.36% | -47.98% | +4.62% |
Current DrawdownCurrent decline from peak | -18.69% | -2.79% | -15.90% |
Average DrawdownAverage peak-to-trough decline | -19.71% | -14.61% | -5.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.18% | 15.83% | -10.65% |
Volatility
CAT vs. PANW - Volatility Comparison
The current volatility for Caterpillar Inc. (CAT) is 15.49%, while Palo Alto Networks, Inc. (PANW) has a volatility of 16.86%. This indicates that CAT experiences smaller price fluctuations and is considered to be less risky than PANW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| CAT | PANW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 15.49% | 16.86% | -1.37% |
Volatility (6M)Calculated over the trailing 6-month period | 30.65% | 35.54% | -4.89% |
Volatility (1Y)Calculated over the trailing 1-year period | 38.13% | 41.49% | -3.36% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 31.39% | 42.35% | -10.96% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 31.23% | 38.89% | -7.66% |
Dividends
CAT vs. PANW - Dividend Comparison
CAT's dividend yield for the trailing twelve months is around 0.89%, while PANW has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CAT Caterpillar Inc. | 0.89% | 1.02% | 1.49% | 1.69% | 1.93% | 2.07% | 2.26% | 2.56% | 2.58% | 1.97% | 3.32% | 4.33% |
PANW Palo Alto Networks, 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% |
Financials
CAT vs. PANW - Financials Comparison
This section allows you to compare key financial metrics between Caterpillar Inc. and Palo Alto Networks, 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. PANW - Profitability Comparison
CAT - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 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%.
PANW - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, Palo Alto Networks, Inc. reported a gross profit of 2.03B and revenue of 3.00B. 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 Jul 2026, Caterpillar Inc. reported an operating income of 3.09B and revenue of 17.42B, resulting in an operating margin of 17.7%.
PANW - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, Palo Alto Networks, Inc. reported an operating income of -186.00M and revenue of 3.00B, resulting in an operating margin of -6.2%.
CAT - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, Caterpillar Inc. reported a net income of 2.55B and revenue of 17.42B, resulting in a net margin of 14.6%.
PANW - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, Palo Alto Networks, Inc. reported a net income of -177.00M and revenue of 3.00B, resulting in a net margin of -5.9%.
Frequently Asked Questions
CAT and PANW have a correlation of 0.01, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PANW has higher volatility (16.86%) compared to CAT (15.49%). In terms of maximum drawdown, CAT dropped -73.43% vs PANW's -47.98%.
CAT currently has the higher Sharpe Ratio (2.95 vs 1.90), 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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