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 2026-05-13.
Broadcom Inc. · Technology
$371.59
-45.0% upside to fair value
Grade C
High Quality
VS
Caterpillar Inc. · Industrials
$912.14
-47.9% upside to fair value
Grade D
High Quality
QuantHub Verdict
AVGO has more upside to fair value
(-45.0%).
CAT trades at a lower forward P/E
(44.9x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
AVGO |
CAT |
| Current Price |
$371.59 |
$912.14 |
| Fair Value Estimate |
$204.37 |
$475.00 |
| Upside to Fair Value |
-45.0%
|
-47.9%
|
| Market Cap |
$1,761.8B |
$420.2B |
| Forward P/E |
70.7x
|
44.9x
|
| EV / EBITDA |
46.7x
|
30.0x
|
| Price / Sales |
25.9x
|
5.9x
|
| Price / FCF |
61.1x
|
36.7x
|
| Revenue Growth YoY |
+7.2%
|
+22.2%
|
| Gross Margin |
67.1%
|
32.5%
|
| Operating Margin |
40.9%
|
16.6%
|
| Return on Equity |
32.9%
|
47.5%
|
| Dividend Yield |
0% |
1.5% |
| FCF Yield |
1.64%
|
2.73%
|
| Analyst Consensus |
Strong Buy
|
Hold
|
Investment Thesis
Broadcom Inc. is a leading technology company specializing in semiconductors and infrastructure software, with a strong competitive moat driven by scale, diversification, and aggressive M&A under CEO Hock E. Tan. The company has demonstrated robust revenue growth, particularly in semiconductor solutions and infrastructure software segments, with a 25% year-over-year increase recently and a five-y…
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 |
AVGO |
CAT |
| Zone Low |
$153.28 |
$356.00 |
| Zone High |
$173.71 |
$404.00 |
| In Buy Zone? |
No
|
No
|