AMAT vs CAT: Which Is the Better Buy?
Side-by-side comparison of Applied Materials, Inc. and Caterpillar Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-24.
Applied Materials, Inc. · Technology
$474.38
-3.5% upside to fair value
Med Conviction
Grade C
High Quality
VS
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
QuantHub Verdict
CAT has more upside to fair value
(-2.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AMAT |
CAT |
| Current Price |
$474.38 |
$808.99 |
| Fair Value Estimate |
$457.95 |
$790.88 |
| Upside to Fair Value |
-3.5%
|
-2.2%
|
| Market Cap |
$376.6B |
$372.6B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.1x
|
23.6x
|
| Price / Sales |
12.2x
|
5.0x
|
| Price / FCF |
67.0x
|
41.4x
|
| Revenue Growth YoY |
+24.8%
|
+24.0%
|
| Gross Margin |
49.4%
|
33.9%
|
| Operating Margin |
30.5%
|
17.5%
|
| Return on Equity |
40.4%
|
54.1%
|
| Dividend Yield |
0.42% |
0.76% |
| FCF Yield |
1.49%
|
2.41%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Applied Materials is the largest supplier of wafer fabrication equipment, providing deposition, etch, ion implantation, and process-control tools alongside a growing Applied Global Services aftermarket business to semiconductor manufacturers worldwide. The business quality is high: TTM gross margin of 49.4%, TTM operating margin of 30.5%, TTM net margin of 30.1%, and ROE of 40.4% reflect a durabl…
Caterpillar is the world's premier manufacturer of heavy construction and mining equipment, diesel and natural gas power units, and industrial gas turbines, organized across Construction Industries, Resource Industries, Energy & Transportation, and Financial Products, with 118,000 employees and a century-old brand. Business quality is high: return on equity of 54.1%, TTM operating margin of 17.5%…
Accumulation Zones
| Metric |
AMAT |
CAT |
| Zone Low |
$343.46 |
$593.16 |
| Zone High |
$389.26 |
$672.25 |
| In Buy Zone? |
No
|
No
|