CAT vs COST: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Costco Wholesale Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-13.
Caterpillar Inc. · Industrials
$912.14
-47.9% upside to fair value
Grade D
High Quality
VS
Costco Wholesale Corporation · Consumer Defensive
$999.89
-20.7% upside to fair value
Grade D
High Quality
QuantHub Verdict
COST has more upside to fair value
(-20.7%).
CAT trades at a lower forward P/E
(44.9x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
COST |
| Current Price |
$912.14 |
$999.89 |
| Fair Value Estimate |
$475.00 |
$793.02 |
| Upside to Fair Value |
-47.9%
|
-20.7%
|
| Market Cap |
$420.2B |
$443.6B |
| Forward P/E |
44.9x
|
51.9x
|
| EV / EBITDA |
30.0x
|
30.9x
|
| Price / Sales |
5.9x
|
1.6x
|
| Price / FCF |
36.7x
|
48.8x
|
| Revenue Growth YoY |
+22.2%
|
+9.2%
|
| Gross Margin |
32.5%
|
12.9%
|
| Operating Margin |
16.6%
|
3.8%
|
| Return on Equity |
47.5%
|
28.8%
|
| Dividend Yield |
1.5% |
0% |
| FCF Yield |
2.73%
|
2.05%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
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…
Costco Wholesale Corporation operates a global membership-based warehouse club model that leverages scale, low costs, and superior employee retention to deliver consistent revenue and earnings growth. The company reported $269.9 billion in net sales for fiscal 2025 with an 8% year-over-year increase, driven by strong segments in Foods and Sundries and membership fees exceeding $5.65 billion in th…
Accumulation Zones
| Metric |
CAT |
COST |
| Zone Low |
$356.00 |
$594.76 |
| Zone High |
$404.00 |
$674.07 |
| In Buy Zone? |
No
|
No
|