TEX vs. CAT
TEX (Terex Corporation) 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, TEX returned 12.99%/yr vs 31.52%/yr for CAT. At a 0.49 correlation, their price movements are largely independent.
Performance
TEX vs. CAT - Performance Comparison
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Returns By Period
In the year-to-date period, TEX achieves a 17.71% return, which is significantly lower than CAT's 62.36% return. Over the past 10 years, TEX has underperformed CAT with an annualized return of 12.99%, while CAT has yielded a comparatively higher 31.52% annualized return.
TEX
- 1D
- 2.20%
- 1M
- 6.18%
- YTD
- 17.71%
- 6M
- 26.47%
- 1Y
- 39.15%
- 3Y*
- 7.87%
- 5Y*
- 4.76%
- 10Y*
- 12.99%
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%
TEX vs. CAT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TEX Terex Corporation | 17.71% | 17.25% | -18.59% | 36.10% | -1.44% | 27.22% | 17.82% | 9.67% | -42.22% | 54.26% |
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 TEX and CAT is 0.70, 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 | 0.70 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.70 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.71 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.71 |
Correlation (All Time) Calculated using the full available price history since Mar 27, 1990 | 0.49 |
Over the past year, TEX and CAT have become more correlated (0.70) than their long-term average of 0.49, meaning their price movements have been converging.
Fundamentals
TEX:
$2.24
CAT:
$20.07
TEX:
27.96
CAT:
46.14
TEX:
2.34
CAT:
3.05
TEX:
0.52
CAT:
6.14
TEX:
$5.93B
CAT:
$70.76B
TEX:
$1.03B
CAT:
$23.01B
TEX:
$449.00M
CAT:
$15.31B
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Return for Risk
TEX vs. CAT — Risk / Return Rank
TEX
CAT
TEX vs. CAT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Terex Corporation (TEX) 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.
| TEX | CAT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -4.14 | ||
| Sortino ratioReturn per unit of downside risk | -4.24 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.72 | -0.54 |
| Calmar ratioReturn relative to maximum drawdown | 1.39 | 12.18 | -10.79 |
| Martin ratioReturn relative to average drawdown | 3.82 | 40.49 | -36.67 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| TEX | CAT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.84 | 4.98 | -4.14 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.11 | 1.08 | -0.97 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.29 | 1.02 | -0.74 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.10 | 0.35 | -0.26 |
Drawdowns
TEX vs. CAT - Drawdown Comparison
The maximum TEX drawdown since its inception was -91.96%, which is greater than CAT's maximum drawdown of -73.43%. Use the drawdown chart below to compare losses from any high point for TEX and CAT.
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Drawdown Indicators
| TEX | CAT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -91.96% | -73.43% | -18.53% |
Max Drawdown (1Y)Largest decline over 1 year | -28.29% | -13.88% | -14.41% |
Max Drawdown (3Y)Largest decline over 3 years | -51.25% | -34.05% | -17.20% |
Max Drawdown (5Y)Largest decline over 5 years | -51.25% | -34.05% | -17.20% |
Max Drawdown (10Y)Largest decline over 10 years | -74.15% | -43.36% | -30.79% |
Current DrawdownCurrent decline from peak | -23.80% | -0.08% | -23.72% |
Average DrawdownAverage peak-to-trough decline | -51.43% | -19.74% | -31.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.27% | 4.17% | +6.10% |
Volatility
TEX vs. CAT - Volatility Comparison
Terex Corporation (TEX) has a higher volatility of 13.77% compared to Caterpillar Inc. (CAT) at 11.17%. This indicates that TEX'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.
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Volatility by Period
| TEX | CAT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 13.77% | 11.17% | +2.60% |
Volatility (6M)Calculated over the trailing 6-month period | 34.67% | 27.09% | +7.58% |
Volatility (1Y)Calculated over the trailing 1-year period | 47.18% | 33.97% | +13.21% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 44.14% | 30.62% | +13.52% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 45.16% | 30.86% | +14.30% |
Dividends
TEX vs. CAT - Dividend Comparison
TEX's dividend yield for the trailing twelve months is around 1.09%, 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% |
TEX Terex Corporation | 1.09% | 1.27% | 1.47% | 1.11% | 1.22% | 1.09% | 0.34% | 1.48% | 1.45% | 0.66% | 0.89% | 1.30% |
Financials
TEX vs. CAT - Financials Comparison
This section allows you to compare key financial metrics between Terex 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
TEX vs. CAT - Profitability Comparison
TEX - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Terex Corporation reported a gross profit of 206.00M and revenue of 1.73B. Therefore, the gross margin over that period was 11.9%.
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%.
TEX - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Terex Corporation reported an operating income of -82.00M and revenue of 1.73B, resulting in an operating margin of -4.7%.
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%.
TEX - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Terex Corporation reported a net income of -89.00M and revenue of 1.73B, resulting in a net margin of -5.1%.
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
TEX and CAT have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TEX has higher volatility (13.77%) compared to CAT (11.17%). In terms of maximum drawdown, TEX dropped -91.96% vs CAT's -73.43%.
CAT currently has the higher Sharpe Ratio (4.98 vs 0.84), 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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