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 2026-07-08.
Applied Materials, Inc. · Technology
$603.04
-45.0% upside to fair value
Grade C
High Quality
VS
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C
High Quality
QuantHub Verdict
CAT has more upside to fair value
(-39.4%).
CAT trades at a lower forward P/E
(46.6x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AMAT |
CAT |
| Current Price |
$603.04 |
$940.12 |
| Fair Value Estimate |
$331.67 |
$569.47 |
| Upside to Fair Value |
-45.0%
|
-39.4%
|
| Market Cap |
$478.8B |
$433.1B |
| Forward P/E |
56.4x
|
46.6x
|
| EV / EBITDA |
43.0x
|
29.7x
|
| Price / Sales |
16.5x
|
6.1x
|
| Price / FCF |
80.3x
|
37.8x
|
| Revenue Growth YoY |
+11.4%
|
+22.2%
|
| Gross Margin |
49.0%
|
32.5%
|
| Operating Margin |
29.5%
|
16.6%
|
| Return on Equity |
39.8%
|
47.5%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
1.25%
|
2.64%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
Applied Materials, Inc. is a leading semiconductor equipment company with a strong competitive moat in multiple wafer fab equipment segments, driven by its scale, infrastructure, and technology leadership in AI-critical process steps. The company benefits from a seasoned management team led by CEO Gary Dickerson, who has over 12 years at the helm and a track record of strong revenue and profitabi…
Caterpillar Inc. is a leading global manufacturer of agricultural and construction machinery, operating within the Industrials sector. The company demonstrates high business quality with a durable competitive moat supported by strong brand recognition, cost advantages, and intangible assets. It posted robust revenue growth of 22.2% and earnings growth of 27.3% in the most recent quarter, reflecti…
Accumulation Zones
| Metric |
AMAT |
CAT |
| Zone Low |
$248.75 |
$427.10 |
| Zone High |
$281.92 |
$484.05 |
| In Buy Zone? |
No
|
No
|