CNH vs. CAT

Last updated Jun 4, 2026

CNH (CNH Industrial NV) and CAT (Caterpillar Inc.) are both stocks. Both operate in the Farm & Heavy Construction Machinery industry within the Industrials sector. Over the past 10 years, CNH returned 5.89%/yr vs 31.52%/yr for CAT. A 0.60 correlation means they provide meaningful diversification when combined.

Performance

CNH vs. CAT - Performance Comparison

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

Returns By Period

In the year-to-date period, CNH achieves a 20.90% return, which is significantly lower than CAT's 62.36% return. Over the past 10 years, CNH has underperformed CAT with an annualized return of 5.89%, while CAT has yielded a comparatively higher 31.52% annualized return.

CNH

• 1D: 0.82%
• 1M: 9.07%
• YTD: 20.90%
• 6M: 17.33%
• 1Y: -11.25%
• 3Y*: -4.62%
• 5Y*: -7.04%
• 10Y*: 5.89%

CAT

• 1D: 1.80%
• 1M: 5.88%
• YTD: 62.36%
• 6M: 57.25%
• 1Y: 167.95%
• 3Y*: 62.31%
• 5Y*: 32.93%
• 10Y*: 31.52%

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

CNH vs. CAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CNH CNH Industrial NV	20.90%	-17.10%	-3.12%	-22.01%	-15.74%	52.59%	16.73%	21.64%	-30.31%	57.67%
CAT Caterpillar Inc.	62.36%	60.30%	24.66%	25.95%	18.60%	15.95%	26.97%	19.51%	-17.56%	75.03%

Correlation

The correlation between CNH and CAT is 0.57, 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	0.57
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (10Y) Calculated over the trailing 10-year period	0.63
Correlation (All Time) Calculated using the full available price history since Oct 1, 2013	0.60

The correlation between CNH and CAT has been stable across timeframes, ranging from 0.57 to 0.63 - a consistent structural relationship.

Fundamentals

Market Cap CNH : $13.73B CAT : $431.41B
EPS CNH : $0.32 CAT : $20.07
PE Ratio CNH : 34.83 CAT : 46.14
PS Ratio CNH : 0.76 CAT : 6.14
PB Ratio CNH : 1.75 CAT : 23.12
Total Revenue (TTM) CNH : $18.09B CAT : $70.76B
Gross Profit (TTM) CNH : $4.45B CAT : $23.01B
EBITDA (TTM) CNH : $2.09B CAT : $15.31B

Return for Risk

CNH vs. CAT — Risk / Return Rank

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

CNH

CNH Risk / Return Rank: 27
CNH Sharpe Ratio Rank: 27
CNH Sortino Ratio Rank: 24
CNH Omega Ratio Rank: 25
CNH Calmar Ratio Rank: 29
CNH Martin Ratio Rank: 30

CAT

CAT Risk / Return Rank: 98
CAT Sharpe Ratio Rank: 98
CAT Sortino Ratio Rank: 98
CAT Omega Ratio Rank: 97
CAT Calmar Ratio Rank: 98
CAT Martin Ratio Rank: 99

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.

CNH vs. CAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for CNH Industrial NV (CNH) and Caterpillar Inc. (CAT). 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.

	CNH	CAT	Difference
Sharpe ratio Return per unit of total volatility	-0.32	4.98	-5.30
Sortino ratio Return per unit of downside risk	-0.25	5.68	-5.92
Omega ratio Gain probability vs. loss probability	0.97	1.72	-0.75
Calmar ratio Return relative to maximum drawdown	-0.34	12.18	-12.52
Martin ratio Return relative to average drawdown	-0.54	40.49	-41.04
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

CNH vs. CAT - Sharpe Ratio Comparison

The current CNH Sharpe Ratio is -0.32, which is lower than the CAT Sharpe Ratio of 4.98. The chart below compares the historical Sharpe Ratios of CNH and CAT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	CNH	CAT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.32	4.98	-5.30
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.20	1.08	-1.28
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.16	1.02	-0.86
Sharpe Ratio (All Time) Calculated using the full available price history	0.03	0.35	-0.33

Drawdowns

CNH vs. CAT - Drawdown Comparison

The maximum CNH drawdown since its inception was -65.82%, smaller than the maximum CAT drawdown of -73.43%. Use the drawdown chart below to compare losses from any high point for CNH and CAT.

Drawdown Indicators

	CNH	CAT	Difference
Max Drawdown Largest peak-to-trough decline	-65.82%	-73.43%	+7.61%
Max Drawdown (1Y) Largest decline over 1 year	-33.19%	-13.88%	-19.31%
Max Drawdown (3Y) Largest decline over 3 years	-37.66%	-34.05%	-3.61%
Max Drawdown (5Y) Largest decline over 5 years	-47.76%	-34.05%	-13.71%
Max Drawdown (10Y) Largest decline over 10 years	-65.82%	-43.36%	-22.46%
Current Drawdown Current decline from peak	-36.84%	-0.08%	-36.76%
Average Drawdown Average peak-to-trough decline	-28.58%	-19.74%	-8.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	20.72%	4.17%	+16.55%

Volatility

CNH vs. CAT - Volatility Comparison

CNH Industrial NV (CNH) has a higher volatility of 14.06% compared to Caterpillar Inc. (CAT) at 11.17%. This indicates that CNH's price experiences larger fluctuations and is considered to be riskier than CAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CNH	CAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	14.06%	11.17%	+2.89%
Volatility (6M) Calculated over the trailing 6-month period	28.65%	27.09%	+1.56%
Volatility (1Y) Calculated over the trailing 1-year period	35.42%	33.97%	+1.45%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.77%	30.62%	+5.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	36.69%	30.86%	+5.83%

Dividends

CNH vs. CAT - Dividend Comparison

CNH's dividend yield for the trailing twelve months is around 0.91%, more than CAT's 0.65% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CAT Caterpillar Inc.	0.65%	1.02%	1.49%	1.69%	1.93%	2.07%	2.26%	2.56%	2.58%	1.97%	3.32%	4.33%
CNH CNH Industrial NV	0.91%	2.71%	4.15%	3.25%	1.88%	0.68%	0.00%	1.85%	1.87%	1.64%	1.50%	2.92%

Financials

CNH vs. CAT - Profitability Comparison

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

CNH - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, CNH Industrial NV reported a gross profit of 0.00 and revenue of 3.83B. Therefore, the gross margin over that period was 0.0%.

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%.

CNH - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, CNH Industrial NV reported an operating income of 0.00 and revenue of 3.83B, resulting in an operating margin of 0.0%.

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%.

CNH - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, CNH Industrial NV reported a net income of 17.00M and revenue of 3.83B, resulting in a net margin of 0.4%.

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%.

Frequently Asked Questions

Can I hold both CNH and CAT in my portfolio?

CNH and CAT have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CNH or CAT?

CNH has higher volatility (14.06%) compared to CAT (11.17%). In terms of maximum drawdown, CNH dropped -65.82% vs CAT's -73.43%.

Which has better risk-adjusted returns?

CAT currently has the higher Sharpe Ratio (4.98 vs -0.32), 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.