ADBE vs CAT: Which Is the Better Buy?

Side-by-side comparison of Adobe Inc. and Caterpillar Inc. β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-05-13.
Adobe Inc. Β· Technology
$248.16
+45.0% upside to fair value
High Conviction Grade B
VS
Caterpillar Inc. Β· Industrials
$912.14
-47.9% upside to fair value
Grade D High Quality
QuantHub Verdict
ADBE has more upside to fair value (+45.0%). ADBE trades at a lower forward P/E (14.1x). These are model outputs β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric ADBE CAT
Current Price $248.16 $912.14
Fair Value Estimate $359.82 $475.00
Upside to Fair Value +45.0% -47.9%
Market Cap $101.2B $420.2B
Forward P/E 14.1x 44.9x
EV / EBITDA β€” 30.0x
Price / Sales 4.1x 5.9x
Price / FCF 9.8x 36.7x
Revenue Growth YoY +3.3% +22.2%
Gross Margin 89.1% 32.5%
Operating Margin 36.6% 16.6%
Return on Equity 62.3% 47.5%
Dividend Yield β€” 1.5%
FCF Yield 10.2% 2.73%
Analyst Consensus Hold Hold
Investment Thesis
ADBE β€” Adobe Inc.
Adobe Inc. develops industry-leading creative software, digital experience platforms, and publishing tools, powering digital content creation and marketing for professionals worldwide. The business excels with high gross margins above 89%, a sticky subscription model driving recurring revenue over $17B ARR, and dominant moats in digital media, though it faces intensifying AI competition and slowi…
CAT β€” Caterpillar Inc.
Caterpillar is the world's leading manufacturer of construction and mining equipment, with diversified revenue across Construction Industries, Resource Industries, Energy & Transportation, and Cat Financial. Q1 2026 results reported April 30 showed revenue of $17.4 billion (+22.2% YoY) and EPS of $5.50 (+30.3% YoY), driven by powerful demand from data center build-outs (large engine and power gen…
Accumulation Zones
Metric ADBE CAT
Zone Low $269.87 $356.00
Zone High $305.85 $404.00
In Buy Zone? Yes No
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