CAT vs. VRT

Last updated Jul 11, 2026

CAT (Caterpillar Inc.) and VRT (Vertiv Holdings Co.) are both stocks. Both are in the Industrials sector — CAT in Farm & Heavy Construction Machinery, VRT in Electrical Equipment & Parts. Over the past 5 years, CAT returned 36.80%/yr vs 63.54%/yr for VRT. At a 0.36 correlation, their price movements are largely independent.

Performance

CAT vs. VRT - Performance Comparison

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

Returns By Period

In the year-to-date period, CAT achieves a 66.96% return, which is significantly lower than VRT's 96.90% return.

CAT

• 1D: 1.49%
• 1M: 6.10%
• 6M: 54.86%
• YTD: 66.96%
• 1Y: 137.17%
• 3Y*: 57.96%
• 5Y*: 36.80%
• 10Y*: 31.08%

VRT

• 1D: -1.56%
• 1M: 7.07%
• 6M: 95.01%
• YTD: 96.90%
• 1Y: 158.89%
• 3Y*: 132.96%
• 5Y*: 63.54%
• 10Y*: —

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

CAT vs. VRT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
CAT Caterpillar Inc.	66.96%	60.30%	24.66%	25.95%	18.60%	15.95%	26.97%	19.51%	-10.30%
VRT Vertiv Holdings Co.	96.90%	42.80%	136.82%	251.81%	-45.25%	33.80%	69.36%	12.55%	1.03%

Correlation

The correlation between CAT and VRT is 0.59, 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	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.47
Correlation (5Y) Calculated over the trailing 5-year period	0.45
Correlation (All Time) Calculated using the full available price history since Jul 30, 2018	0.36

Over the past year, CAT and VRT have become more correlated (0.59) than their long-term average of 0.36, meaning their price movements have been converging.

Fundamentals

Market Cap CAT : $438.72B VRT : $122.48B
EPS CAT : $20.10 VRT : $3.98
PE Ratio CAT : 47.38 VRT : 80.07
PEG Ratio CAT : 3.13 VRT : 0.35
PS Ratio CAT : 6.31 VRT : 11.51
PB Ratio CAT : 23.77 VRT : 29.46
Total Revenue (TTM) CAT : $70.76B VRT : $10.84B
Gross Profit (TTM) CAT : $23.01B VRT : $3.92B
EBITDA (TTM) CAT : $15.31B VRT : $2.35B

Return for Risk

CAT vs. VRT — Risk / Return Rank

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

CAT

CAT Risk / Return Rank: 97
CAT Sharpe Ratio Rank: 98
CAT Sortino Ratio Rank: 97
CAT Omega Ratio Rank: 96
CAT Calmar Ratio Rank: 98
CAT Martin Ratio Rank: 98

VRT

VRT Risk / Return Rank: 94
VRT Sharpe Ratio Rank: 96
VRT Sortino Ratio Rank: 93
VRT Omega Ratio Rank: 91
VRT Calmar Ratio Rank: 96
VRT Martin Ratio Rank: 95

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.

CAT vs. VRT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Caterpillar Inc. (CAT) and Vertiv Holdings Co. (VRT). 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	VRT	Difference
Sharpe ratio: Return per unit of total volatility	3.62	2.69	+0.93
Sortino ratio: Return per unit of downside risk	4.16	3.15	+1.01
Omega ratio: Gain probability vs. loss probability	1.54	1.39	+0.14
Calmar ratio: Return relative to maximum drawdown	9.84	6.54	+3.30
Martin ratio: Return relative to average drawdown	29.76	16.18	+13.58

CAT vs. VRT - Sharpe Ratio Comparison

The current CAT Sharpe Ratio is 3.62, which is higher than the VRT Sharpe Ratio of 2.69. The chart below compares the historical Sharpe Ratios of CAT and VRT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

CAT vs. VRT - Drawdown Comparison

The maximum CAT drawdown since its inception was -73.43%, roughly equal to the maximum VRT drawdown of -71.24%. Use the drawdown chart below to compare losses from any high point for CAT and VRT.

Drawdown Indicators

	CAT	VRT	Difference
Max Drawdown Largest peak-to-trough decline	-73.43%	-71.24%	-2.19%
Max Drawdown (1Y) Largest decline over 1 year	-13.88%	-25.32%	+11.44%
Max Drawdown (3Y) Largest decline over 3 years	-34.05%	-61.28%	+27.23%
Max Drawdown (5Y) Largest decline over 5 years	-34.05%	-71.24%	+37.19%
Max Drawdown (10Y) Largest decline over 10 years	-43.36%	—	—
Current Drawdown Current decline from peak	-10.56%	-15.23%	+4.67%
Average Drawdown Average peak-to-trough decline	-19.71%	-16.22%	-3.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.58%	10.21%	-5.63%

Volatility

CAT vs. VRT - Volatility Comparison

The current volatility for Caterpillar Inc. (CAT) is 17.16%, while Vertiv Holdings Co. (VRT) has a volatility of 24.73%. This indicates that CAT experiences smaller price fluctuations and is considered to be less risky than VRT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CAT	VRT	Difference
Volatility (1M) Calculated over the trailing 1-month period	17.16%	24.73%	-7.57%
Volatility (6M) Calculated over the trailing 6-month period	30.20%	48.62%	-18.42%
Volatility (1Y) Calculated over the trailing 1-year period	37.70%	61.75%	-24.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.34%	62.71%	-31.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.18%	54.98%	-23.80%

Dividends

CAT vs. VRT - Dividend Comparison

CAT's dividend yield for the trailing twelve months is around 0.63%, more than VRT's 0.07% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CAT Caterpillar Inc.	0.63%	1.02%	1.49%	1.69%	1.93%	2.07%	2.26%	2.56%	2.58%	1.97%	3.32%	4.33%
VRT Vertiv Holdings Co.	0.07%	0.11%	0.10%	0.05%	0.07%	0.04%	0.05%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

CAT vs. VRT - Profitability Comparison

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

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%.

VRT - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, Vertiv Holdings Co. reported a gross profit of 999.70M and revenue of 2.65B. Therefore, the gross margin over that period was 37.7%.

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%.

VRT - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, Vertiv Holdings Co. reported an operating income of 440.10M and revenue of 2.65B, resulting in an operating margin of 16.6%.

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%.

VRT - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, Vertiv Holdings Co. reported a net income of 390.10M and revenue of 2.65B, resulting in a net margin of 14.7%.

Frequently Asked Questions

Can I hold both CAT and VRT in my portfolio?

CAT and VRT have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CAT or VRT?

VRT has higher volatility (24.73%) compared to CAT (17.16%). In terms of maximum drawdown, CAT dropped -73.43% vs VRT's -71.24%.

Which has better risk-adjusted returns?

CAT currently has the higher Sharpe Ratio (3.62 vs 2.69), 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.