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 2026-09-22.
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
VS
Constellation Energy Corporation · Utilities
$262.11
-4.2% 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 |
CAT |
CEG |
| Current Price |
$808.99 |
$262.11 |
| Fair Value Estimate |
$790.88 |
$250.98 |
| Upside to Fair Value |
-2.2%
|
-4.2%
|
| Market Cap |
$372.6B |
$94.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
13.9x
|
| Price / Sales |
5.0x
|
3.0x
|
| Price / FCF |
41.4x
|
300.3x
|
| Revenue Growth YoY |
+24.0%
|
+23.0%
|
| Gross Margin |
33.9%
|
94.9%
|
| Operating Margin |
17.5%
|
14.7%
|
| Return on Equity |
54.1%
|
14.7%
|
| Dividend Yield |
0.76% |
0.64% |
| FCF Yield |
2.41%
|
0.33%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
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%…
Constellation Energy is the largest U.S. producer of carbon-free electricity, operating roughly 32,400 megawatts of nuclear, gas, wind, solar, and hydro generation across the Mid-Atlantic, Midwest, New York, ERCOT, and other power markets, with a 94.9% TTM gross margin that reflects the low marginal cost of nuclear fuel and the scarcity value of firm clean power. The business quality is genuinely…
Accumulation Zones
| Metric |
CAT |
CEG |
| Zone Low |
$593.16 |
$188.23 |
| Zone High |
$672.25 |
$213.33 |
| In Buy Zone? |
No
|
No
|