CAT vs CEG: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Constellation Energy Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-08-06.
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C
High Quality
VS
Constellation Energy Corporation · Utilities
$265.12
+11.3% upside to fair value
Med Conviction
Grade B-
QuantHub Verdict
CEG has more upside to fair value
(+11.3%).
CEG trades at a lower forward P/E
(22.6x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
CEG |
| Current Price |
$940.12 |
$265.12 |
| Fair Value Estimate |
$569.47 |
$295.00 |
| Upside to Fair Value |
-39.4%
|
+11.3%
|
| Market Cap |
$433.1B |
$95.2B |
| Forward P/E |
46.6x
|
22.6x
|
| EV / EBITDA |
29.7x
|
12.6x
|
| Price / Sales |
6.1x
|
2.9x
|
| Price / FCF |
37.8x
|
196.2x
|
| Revenue Growth YoY |
+22.2%
|
+35.3%
|
| Gross Margin |
32.5%
|
44.6%
|
| Operating Margin |
16.6%
|
14.6%
|
| Return on Equity |
47.5%
|
11.1%
|
| Dividend Yield |
0% |
0.64% |
| FCF Yield |
2.64%
|
0.51%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
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…
Constellation Energy is the largest private-sector power producer in the world and the largest operator of nuclear plants in the United States, controlling roughly 32,400 megawatts of largely carbon-free generation before its January 2026 acquisition of Calpine added about 23 gigawatts of natural gas and geothermal capacity to create a nearly 60 gigawatt platform spanning nuclear, gas, wind, sola…
Accumulation Zones
| Metric |
CAT |
CEG |
| Zone Low |
$427.10 |
$221.00 |
| Zone High |
$484.05 |
$251.00 |
| In Buy Zone? |
No
|
No
|