TNC vs. CAT

Last updated Jun 3, 2026

TNC (Tennant Company) and CAT (Caterpillar Inc.) are both stocks. Both are in the Industrials sector — TNC in Specialty Industrial Machinery, CAT in Farm & Heavy Construction Machinery. Over the past 10 years, TNC returned 6.06%/yr vs 31.52%/yr for CAT. At a 0.37 correlation, their price movements are largely independent.

Performance

TNC vs. CAT - Performance Comparison

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

Returns By Period

In the year-to-date period, TNC achieves a 17.46% return, which is significantly lower than CAT's 62.36% return. Over the past 10 years, TNC has underperformed CAT with an annualized return of 6.06%, while CAT has yielded a comparatively higher 31.52% annualized return.

TNC

• 1D: 0.18%
• 1M: 4.05%
• YTD: 17.46%
• 6M: 19.57%
• 1Y: 20.40%
• 3Y*: 4.98%
• 5Y*: 2.07%
• 10Y*: 6.06%

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)

TNC vs. CAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TNC Tennant Company	17.46%	-8.22%	-11.03%	52.62%	-22.84%	16.87%	-8.78%	51.57%	-27.40%	3.32%
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 TNC and CAT is 0.51, 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	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (10Y) Calculated over the trailing 10-year period	0.52
Correlation (All Time) Calculated using the full available price history since Mar 4, 1992	0.37

The correlation between TNC and CAT shifts across timeframes, from 0.37 (all time) to 0.53 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap TNC : $1.53B CAT : $431.41B
EPS TNC : $1.69 CAT : $20.07
PE Ratio TNC : 50.85 CAT : 46.14
PS Ratio TNC : 1.30 CAT : 6.14
PB Ratio TNC : 2.88 CAT : 23.12
Total Revenue (TTM) TNC : $1.21B CAT : $70.76B
Gross Profit (TTM) TNC : $477.90M CAT : $23.01B
EBITDA (TTM) TNC : $97.00M CAT : $15.31B

Return for Risk

TNC vs. CAT — Risk / Return Rank

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

TNC

TNC Risk / Return Rank: 56
TNC Sharpe Ratio Rank: 60
TNC Sortino Ratio Rank: 50
TNC Omega Ratio Rank: 58
TNC Calmar Ratio Rank: 55
TNC Martin Ratio Rank: 57

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.

TNC vs. CAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Tennant Company (TNC) 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.

	TNC	CAT	Difference
Sharpe ratio Return per unit of total volatility	0.58	4.98	-4.39
Sortino ratio Return per unit of downside risk	0.89	5.68	-4.79
Omega ratio Gain probability vs. loss probability	1.16	1.72	-0.56
Calmar ratio Return relative to maximum drawdown	0.62	12.18	-11.55
Martin ratio Return relative to average drawdown	1.64	40.49	-38.85
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TNC vs. CAT - Sharpe Ratio Comparison

The current TNC Sharpe Ratio is 0.58, which is lower than the CAT Sharpe Ratio of 4.98. The chart below compares the historical Sharpe Ratios of TNC 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

	TNC	CAT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.58	4.98	-4.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.07	1.08	-1.01
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.19	1.02	-0.84
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	0.35	-0.12

Drawdowns

TNC vs. CAT - Drawdown Comparison

The maximum TNC drawdown since its inception was -83.81%, which is greater than CAT's maximum drawdown of -73.43%. Use the drawdown chart below to compare losses from any high point for TNC and CAT.

Drawdown Indicators

	TNC	CAT	Difference
Max Drawdown Largest peak-to-trough decline	-83.81%	-73.43%	-10.38%
Max Drawdown (1Y) Largest decline over 1 year	-27.71%	-13.88%	-13.83%
Max Drawdown (3Y) Largest decline over 3 years	-48.98%	-34.05%	-14.93%
Max Drawdown (5Y) Largest decline over 5 years	-48.98%	-34.05%	-14.93%
Max Drawdown (10Y) Largest decline over 10 years	-48.98%	-43.36%	-5.62%
Current Drawdown Current decline from peak	-27.85%	-0.08%	-27.77%
Average Drawdown Average peak-to-trough decline	-16.85%	-19.74%	+2.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.50%	4.17%	+6.33%

Volatility

TNC vs. CAT - Volatility Comparison

The current volatility for Tennant Company (TNC) is 9.54%, while Caterpillar Inc. (CAT) has a volatility of 11.17%. This indicates that TNC 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.

Volatility by Period

	TNC	CAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.54%	11.17%	-1.63%
Volatility (6M) Calculated over the trailing 6-month period	32.82%	27.09%	+5.73%
Volatility (1Y) Calculated over the trailing 1-year period	35.34%	33.97%	+1.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.39%	30.62%	-1.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.15%	30.86%	+1.29%

Dividends

TNC vs. CAT - Dividend Comparison

TNC's dividend yield for the trailing twelve months is around 1.43%, 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%
TNC Tennant Company	1.43%	1.62%	1.39%	1.16%	1.65%	1.16%	1.27%	1.13%	1.63%	1.16%	1.14%	1.42%

Financials

TNC vs. CAT - Profitability Comparison

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

TNC - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Tennant Company reported a gross profit of 113.60M and revenue of 297.90M. Therefore, the gross margin over that period was 38.1%.

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%.

TNC - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Tennant Company reported an operating income of 4.90M and revenue of 297.90M, resulting in an operating margin of 1.6%.

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%.

TNC - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Tennant Company reported a net income of 200.00K and revenue of 297.90M, resulting in a net margin of 0.1%.

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

Can I hold both TNC and CAT in my portfolio?

TNC and CAT have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TNC or CAT?

CAT has higher volatility (11.17%) compared to TNC (9.54%). In terms of maximum drawdown, TNC dropped -83.81% vs CAT's -73.43%.

Which has better risk-adjusted returns?

CAT currently has the higher Sharpe Ratio (4.98 vs 0.58), 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.