CAT Outpaces KMTUY with Stronger Earnings Momentum

Caterpillar and Komatsu are two of the world's leading manufacturers of construction and mining equipment. Caterpillar, based in Illinois, has a market capitalization of $375 billion, while Tokyo-based Komatsu has around $40 billion. Both companies have a strong global presence, serving diverse end markets including infrastructure, construction, mining, oil and gas, and industrial applications.

Caterpillar has delivered positive revenue growth over the past four quarters, with earnings growth in the last three. In the second quarter of 2026, revenues rose by 24% year-over-year to $20.5 billion, driven by higher sales volumes across its businesses. Adjusted earnings per share surged 73% to a record $8.17.

Komatsu has also delivered sales growth in the last three quarters but continues to face challenges, including lower operating income and net income in fiscal 2026 due to tariff-related costs. The company expects 4.1% net sales growth for the year, with 50% of its products sold in the US being imported from Japan and China.

Over the long term, both companies are well-positioned to benefit from infrastructure spending, mining activity, and the increasing adoption of autonomous equipment. Caterpillar's superior earnings momentum, stronger profitability, higher return on equity, and more favorable estimate trends justify its premium multiple.