Caterpillar Outpaces Komatsu with Stronger Earnings Momentum
Caterpillar and Komatsu are two of the world's leading manufacturers of construction and mining equipment, with Caterpillar holding the top spot as the industry leader. Both companies have a strong global presence and serve diverse end markets, including infrastructure, construction, mining, oil and gas, and industrial applications.
Caterpillar has delivered positive revenue growth over the past four quarters and earnings growth in the last three, with revenues increasing 24% year-over-year to $20.5 billion in the second quarter of 2026. Adjusted earnings per share surged 73% to a record $8.17.
Komatsu's revenues increased 14.7% year-over-year to JPY 1.043 billion ($6.545 billion) in the first quarter of fiscal 2026, but its earnings continue to remain under pressure. Komatsu expects net sales to increase 4.1% in fiscal 2026, but operating income and net income are expected to decrease 2.2% and 7.3%, respectively.
Caterpillar is currently trading at a forward 12-month earnings multiple of 25.68X, while Komatsu stock is trading at a forward 12-month earnings multiple of 16.32X. Caterpillar's return on equity (ROE) is significantly higher than Komatsu's at 55.53% versus 10.51%, respectively.
In the past year, CAT stock has gained 71.5%, while KMTUY has gained 26.7%. Although both companies are well-positioned for long-term growth due to their focus on technological innovation and automation, Caterpillar's superior earnings momentum, stronger profitability, and higher return on equity make it a more attractive option.