CAT vs COP: Which Is the Better Buy?

Side-by-side comparison of Caterpillar Inc. and ConocoPhillips — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-07-08.

CAT

Caterpillar Inc. · Industrials

$940.12

-39.4% upside to fair value

Grade C High Quality

COP

ConocoPhillips · Energy

$108.44

-21.6% upside to fair value

Grade D

QuantHub Verdict

COP has more upside to fair value (-21.6%). COP trades at a lower forward P/E (18.4x). These are model outputs — not personalized investment advice. See all research →

Valuation & Fundamentals

Metric	CAT	COP
Current Price	$940.12	$108.44
Fair Value Estimate	$569.47	$85.04
Upside to Fair Value	-39.4%	-21.6%
Market Cap	$433.1B	$132.1B
Forward P/E	46.6x	18.4x
EV / EBITDA	29.7x	6.1x
Price / Sales	6.1x	2.3x
Price / FCF	37.8x	8.6x
Revenue Growth YoY	+22.2%	-2.5%
Gross Margin	32.5%	29.2%
Operating Margin	16.6%	18.3%
Return on Equity	47.5%	11.3%
Dividend Yield	0%	0%
FCF Yield	2.64%	11.64%
Analyst Consensus	Hold	Strong Buy

Investment Thesis

CAT — Caterpillar Inc.

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…

COP — ConocoPhillips

ConocoPhillips is a major player in the Energy sector focused on Oil & Gas Exploration & Production. The company demonstrates medium business quality with a stable competitive position but faces earnings pressure as reflected in a 23.4% decline in earnings and a 2.5% decline in revenue in the most recent quarter year-over-year. Despite a solid ROE of 11.3% and attractive margins (gross margin 29.…

Accumulation Zones

Metric	CAT	COP
Zone Low	$427.10	$63.78
Zone High	$484.05	$72.28
In Buy Zone?	No	No

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