AVGO vs CAT: Which Is the Better Buy?
Side-by-side comparison of Broadcom Inc. and Caterpillar Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-24.
Broadcom Inc. · Technology
$354.99
+15.1% upside to fair value
Med Conviction
Grade B
High Quality
VS
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
QuantHub Verdict
AVGO has more upside to fair value
(+15.1%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
AVGO |
CAT |
| Current Price |
$354.99 |
$808.99 |
| Fair Value Estimate |
$408.70 |
$790.88 |
| Upside to Fair Value |
+15.1%
|
-2.2%
|
| Market Cap |
$1,688.9B |
$372.6B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
33.0x
|
23.6x
|
| Price / Sales |
18.9x
|
5.0x
|
| Price / FCF |
42.9x
|
41.4x
|
| Revenue Growth YoY |
+85.5%
|
+24.0%
|
| Gross Margin |
67.7%
|
33.9%
|
| Operating Margin |
48.3%
|
17.5%
|
| Return on Equity |
43.9%
|
54.1%
|
| Dividend Yield |
0.73% |
0.76% |
| FCF Yield |
2.33%
|
2.41%
|
| Analyst Consensus |
Strong Buy
|
Buy
|
Investment Thesis
Broadcom is a diversified semiconductor and infrastructure software company led by CEO Hock Tan, with a portfolio spanning custom AI ASICs, networking, wireless, storage, and enterprise software. The business quality is high: TTM gross margin of 67.7%, TTM operating margin of 48.3%, TTM net margin of 42.9%, and ROE of 43.9% demonstrate exceptional profitability, while revenue growth of 85.5% and …
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 |
AVGO |
CAT |
| Zone Low |
$306.52 |
$593.16 |
| Zone High |
$347.39 |
$672.25 |
| In Buy Zone? |
No
|
No
|