Motley Fool’s analysis calls Caterpillar the stronger industrial business and Honeywell a lower-priced turnaround. FY2025 revenue was $67.6 billion at Caterpillar and $37.4 billion at Honeywell; their price-to-sales ratios were 5.5x and 1.7x, respectively.
Revenue grew 4.3% at Caterpillar and 7.8% at Honeywell, but net income fell from FY2024 levels to $8.9 billion and $4.7 billion, respectively. Net margins declined to 13.1% from 16.7% for Caterpillar and 12.6% from 16.4% for Honeywell; FY2025 free cash flow was $7.5 billion and $5.4 billion. Forward P/E ratios were 29.7x and 24.8x. The article says valuation figures come from Financial Modeling Prep and may differ across providers; Honeywell’s 1.7x price-to-sales ratio compares with its five-year average of 3.2x.
Caterpillar’s risks include machinery demand sensitive to commodity-price and global economic swings, supply-chain disruption, dealer inventory management and competition. It acquired Skycatch, Monarch Tractor and RPMGlobal in 2026 to boost mining and agricultural technology. Honeywell has spun off its aerospace segment and is divesting Warehouse and Workflow Solutions; the article cites acquisition-integration, reorganization, competitive and litigation risks, including settlements related to past commercial agreements.
