FSS vs. CAT
FSS (Federal Signal Corporation) and CAT (Caterpillar Inc.) are both stocks. Both are in the Industrials sector — FSS in Pollution & Treatment Controls, CAT in Farm & Heavy Construction Machinery. Over the past 10 years, FSS returned 26.19%/yr vs 33.19%/yr for CAT. At a 0.37 correlation, their price movements are largely independent.
Performance
FSS vs. CAT - Performance Comparison
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Returns By Period
In the year-to-date period, FSS achieves a 8.44% return, which is significantly lower than CAT's 79.21% return. Over the past 10 years, FSS has underperformed CAT with an annualized return of 26.19%, while CAT has yielded a comparatively higher 33.19% annualized return.
FSS
- 1D
- -0.91%
- 1M
- 4.29%
- YTD
- 8.44%
- 6M
- 4.00%
- 1Y
- 16.83%
- 3Y*
- 24.44%
- 5Y*
- 24.98%
- 10Y*
- 26.19%
CAT
- 1D
- 3.70%
- 1M
- 16.18%
- YTD
- 79.21%
- 6M
- 76.27%
- 1Y
- 186.63%
- 3Y*
- 65.85%
- 5Y*
- 39.22%
- 10Y*
- 33.19%
FSS vs. CAT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FSS Federal Signal Corporation | 8.44% | 18.21% | 21.05% | 66.26% | 8.22% | 31.80% | 3.99% | 63.92% | 0.39% | 30.79% |
CAT Caterpillar Inc. | 79.21% | 60.30% | 24.66% | 25.95% | 18.60% | 15.95% | 26.97% | 19.51% | -17.56% | 75.03% |
Correlation
The correlation between FSS and CAT is 0.58, 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 | 0.58 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.60 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.57 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.56 |
Correlation (All Time) Calculated using the full available price history since Mar 1, 1982 | 0.37 |
Over the past year, FSS and CAT have become more correlated (0.58) than their long-term average of 0.37, meaning their price movements have been converging.
Fundamentals
FSS:
$7.22B
CAT:
$476.18B
FSS:
$4.41
CAT:
$20.07
FSS:
26.65
CAT:
50.93
FSS:
1.04
CAT:
3.37
FSS:
3.08
CAT:
6.78
FSS:
5.03
CAT:
25.52
FSS:
$2.34B
CAT:
$70.76B
FSS:
$670.20M
CAT:
$23.01B
FSS:
$435.10M
CAT:
$15.31B
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Return for Risk
FSS vs. CAT — Risk / Return Rank
FSS
CAT
FSS vs. CAT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Federal Signal Corporation (FSS) 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.
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.
| FSS | CAT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -4.83 | ||
| Sortino ratioReturn per unit of downside risk | -4.66 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.73 | -0.61 |
| Calmar ratioReturn relative to maximum drawdown | 0.89 | 13.53 | -12.64 |
| Martin ratioReturn relative to average drawdown | 1.54 | 44.33 | -42.79 |
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Drawdowns
FSS vs. CAT - Drawdown Comparison
The maximum FSS drawdown since its inception was -83.43%, which is greater than CAT's maximum drawdown of -73.43%. Use the drawdown chart below to compare losses from any high point for FSS and CAT.
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Drawdown Indicators
| FSS | CAT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -83.43% | -73.43% | -10.00% |
Max Drawdown (1Y)Largest decline over 1 year | -19.04% | -13.88% | -5.16% |
Max Drawdown (3Y)Largest decline over 3 years | -31.54% | -34.05% | +2.51% |
Max Drawdown (5Y)Largest decline over 5 years | -32.96% | -34.05% | +1.09% |
Max Drawdown (10Y)Largest decline over 10 years | -32.96% | -43.36% | +10.40% |
Current DrawdownCurrent decline from peak | -9.13% | 0.00% | -9.13% |
Average DrawdownAverage peak-to-trough decline | -22.56% | -19.72% | -2.84% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.96% | 4.23% | +6.73% |
Volatility
FSS vs. CAT - Volatility Comparison
The current volatility for Federal Signal Corporation (FSS) is 9.95%, while Caterpillar Inc. (CAT) has a volatility of 12.90%. This indicates that FSS experiences smaller price fluctuations and is considered to be less risky than CAT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FSS | CAT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.95% | 12.90% | -2.95% |
Volatility (6M)Calculated over the trailing 6-month period | 23.76% | 27.80% | -4.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 35.67% | 35.49% | +0.18% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 30.75% | 30.84% | -0.09% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 31.67% | 31.03% | +0.64% |
Dividends
FSS vs. CAT - Dividend Comparison
FSS's dividend yield for the trailing twelve months is around 0.49%, less than CAT's 0.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CAT Caterpillar Inc. | 0.59% | 1.02% | 1.49% | 1.69% | 1.93% | 2.07% | 2.26% | 2.56% | 2.58% | 1.97% | 3.32% | 4.33% |
FSS Federal Signal Corporation | 0.49% | 0.52% | 0.52% | 0.51% | 0.77% | 0.83% | 0.96% | 0.99% | 1.56% | 1.39% | 1.79% | 1.58% |
Financials
FSS vs. CAT - Financials Comparison
This section allows you to compare key financial metrics between Federal Signal Corporation and Caterpillar 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
FSS vs. CAT - Profitability Comparison
FSS - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Federal Signal Corporation reported a gross profit of 179.40M and revenue of 625.60M. Therefore, the gross margin over that period was 28.7%.
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%.
FSS - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Federal Signal Corporation reported an operating income of 99.70M and revenue of 625.60M, resulting in an operating margin of 15.9%.
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%.
FSS - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Federal Signal Corporation reported a net income of 70.40M and revenue of 625.60M, resulting in a net margin of 11.3%.
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%.
Frequently Asked Questions
FSS and CAT have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
CAT has higher volatility (12.90%) compared to FSS (9.95%). In terms of maximum drawdown, FSS dropped -83.43% vs CAT's -73.43%.
CAT currently has the higher Sharpe Ratio (5.30 vs 0.47), 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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