Motley Fool says Caterpillar had lower forward multiples and higher free cash flow than Corning, while Corning’s FY2025 revenue grew faster amid AI demand. Neither stock is cheap; it sees Corning as the AI play and Caterpillar as the diversified option.
Caterpillar reported $67.6 billion in FY2025 revenue, up 4.3%, and $7.5 billion in free cash flow; Corning reported $15.6 billion in revenue, up 19.1%, and $1.4 billion in free cash flow. Their forward P/E ratios were 29.7 and 45.7, respectively, and price-to-sales ratios were 5.1 and 7.9. Both P/S ratios exceed five-year averages of 2.9 for Caterpillar and 3.4 for Corning; Financial Modeling Prep supplied the valuation figures, which may differ by provider.
Caterpillar’s construction and mining businesses are cyclical, and commodity-price shifts can lead customers to postpone equipment purchases. Corning faces customer concentration, volatile demand for manufacturing equipment and semiconductor supply-chain complexity. Author Jake Lerch disclosed holdings in Amazon, Caterpillar and Nvidia; The Motley Fool disclosed positions in and recommendations for Amazon, Caterpillar, Corning, Deere and Nvidia.
