CAT vs. TER
CAT (Caterpillar Inc.) and TER (Teradyne, Inc.) are both stocks. CAT operates in Farm & Heavy Construction Machinery (Industrials), while TER operates in Semiconductor Equipment & Materials (Technology). Over the past 10 years, CAT returned 28.72%/yr vs 34.90%/yr for TER. Their 0.37 correlation means their historical movements had little consistent relationship.
Performance
CAT vs. TER - Performance Comparison
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Returns By Period
In the year-to-date period, CAT achieves a 43.10% return, which is significantly lower than TER's 90.11% return. Over the past 10 years, CAT has underperformed TER with an annualized return of 28.72%, while TER has yielded a comparatively higher 34.90% annualized return.
CAT
- 1D
- 0.70%
- 1M
- -17.66%
- 6M
- 24.42%
- YTD
- 43.10%
- 1Y
- 87.70%
- 3Y*
- 43.33%
- 5Y*
- 33.84%
- 10Y*
- 28.72%
- ALL TIME*
- 10.47%
TER
- 1D
- 0.60%
- 1M
- -13.96%
- 6M
- 52.66%
- YTD
- 90.11%
- 1Y
- 243.14%
- 3Y*
- 49.54%
- 5Y*
- 24.17%
- 10Y*
- 34.90%
- ALL TIME*
- 11.43%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $2.66B | $2.67B | $2.93B | |
| $1.53B | $1.39B | $1.68B |
CAT vs. TER - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
CAT Caterpillar Inc. | 43.10% | 60.30% | 24.66% | 25.95% | 18.60% | 15.95% | 26.97% | 19.51% | -17.56% | 75.03% |
TER Teradyne, Inc. | 90.11% | 54.39% | 16.51% | 24.78% | -46.35% | 36.81% | 76.73% | 118.93% | -24.37% | 66.16% |
Correlation
The correlation between CAT and TER is 0.72, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.72 |
Correlation (3Y) Balances recent behavior with more history. | 0.59 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.53 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.48 |
Correlation (All Time) Calculated using the full available price history since Mar 11, 1987 | 0.37 |
Over the past year, CAT and TER have become more correlated (0.72) than their long-term average of 0.37, meaning their price movements have been converging.
Fundamentals
CAT:
$375.33B
TER:
$57.56B
CAT:
$20.10
TER:
$7.28
CAT:
40.53
TER:
50.51
CAT:
5.40
TER:
13.02
CAT:
20.34
TER:
0.02
CAT:
$70.76B
TER:
$4.46B
CAT:
$23.01B
TER:
$2.65B
CAT:
$15.31B
TER:
$1.42B
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Return for Risk
CAT vs. TER — Risk / Return Rank
CAT
TER
CAT vs. TER - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Caterpillar Inc. (CAT) and Teradyne, Inc. (TER). 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 | TER | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.06 | ||
| Sortino ratioReturn per unit of downside risk | -0.29 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.44 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 3.34 | 7.20 | -3.86 |
| Martin ratioReturn relative to average drawdown | 13.81 | 22.29 | -8.48 |
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Drawdowns
CAT vs. TER - Drawdown Comparison
The maximum CAT drawdown since its inception was -73.43%, smaller than the maximum TER drawdown of -97.30%. Use the drawdown chart below to compare losses from any high point for CAT and TER.
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Drawdown Indicators
| CAT | TER | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.43% | -97.30% | +23.87% |
Max Drawdown (1Y)Largest decline over 1 year | -26.36% | -33.98% | +7.62% |
Max Drawdown (3Y)Largest decline over 3 years | -34.05% | -58.18% | +24.13% |
Max Drawdown (5Y)Largest decline over 5 years | -34.05% | -59.12% | +25.07% |
Max Drawdown (10Y)Largest decline over 10 years | -43.36% | -59.12% | +15.76% |
Current DrawdownCurrent decline from peak | -23.34% | -24.01% | +0.67% |
Average DrawdownAverage peak-to-trough decline | -19.71% | -58.54% | +38.83% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.41% | 10.96% | -4.55% |
Volatility
CAT vs. TER - Volatility Comparison
The current volatility for Caterpillar Inc. (CAT) is 11.37%, while Teradyne, Inc. (TER) has a volatility of 29.42%. This indicates that CAT experiences smaller price fluctuations and is considered to be less risky than TER based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| CAT | TER | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 11.37% | 29.42% | -18.05% |
Volatility (6M)Calculated over the trailing 6-month period | 31.53% | 63.50% | -31.97% |
Volatility (1Y)Calculated over the trailing 1-year period | 39.11% | 73.88% | -34.77% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 31.62% | 52.71% | -21.09% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 31.31% | 46.68% | -15.37% |
Dividends
CAT vs. TER - Dividend Comparison
CAT's dividend yield for the trailing twelve months is around 0.76%, more than TER's 0.14% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CAT Caterpillar Inc. | 0.76% | 1.02% | 1.49% | 1.69% | 1.93% | 2.07% | 2.26% | 2.56% | 2.58% | 1.97% | 3.32% | 4.33% |
TER Teradyne, Inc. | 0.14% | 0.25% | 0.38% | 0.41% | 0.50% | 0.24% | 0.33% | 0.53% | 1.15% | 0.67% | 0.94% | 1.16% |
Financials
CAT vs. TER - Financials Comparison
This section allows you to compare key financial metrics between Caterpillar Inc. and Teradyne, 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. TER - Profitability Comparison
CAT - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 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%.
TER - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, Teradyne, Inc. reported a gross profit of 794.62M and revenue of 1.33B. Therefore, the gross margin over that period was 59.8%.
CAT - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, Caterpillar Inc. reported an operating income of 3.09B and revenue of 17.42B, resulting in an operating margin of 17.7%.
TER - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, Teradyne, Inc. reported an operating income of 437.81M and revenue of 1.33B, resulting in an operating margin of 32.9%.
CAT - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, Caterpillar Inc. reported a net income of 2.55B and revenue of 17.42B, resulting in a net margin of 14.6%.
TER - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, Teradyne, Inc. reported a net income of 374.53M and revenue of 1.33B, resulting in a net margin of 28.2%.
Frequently Asked Questions
CAT and TER have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TER has higher volatility (29.42%) compared to CAT (11.37%). In terms of maximum drawdown, CAT dropped -73.43% vs TER's -97.30%.
TER currently has the higher Sharpe Ratio (3.31 vs 2.25), 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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