This video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and industrials editor/analyst Isaac Pino discuss topics across the investing world.

In honor of March Madness, The Motley Fool is running its own bracket, only it's got nothing to do with basketball. We created a bracket based on performance over the next 12 months for the components of the Dow Jones Industrial Average. Today, Brendan and Isaac pit industry toppers Caterpillar and General Electric head-to-head to see which one is expected to perform the best over the next 12 months. Brendan thinks GE is still cheap as it continues its recovery from the financial crisis. The company pays a solid dividend of 3.4%, and Brendan has been impressed with the steps taken to reduce risk at its GE Capital unit. Isaac goes in-depth on Caterpillar, a stock that he likes for its competitive advantages and position as a market leader. The company is seeing excellent growth in emerging markets, and continues to dominate the U.S. construction equipment market.

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