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 2026-09-25.
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
VS
Costco Wholesale Corporation · Consumer Defensive
$896.48
+24.7% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
COST has more upside to fair value
(+24.7%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
COST |
| Current Price |
$808.99 |
$896.48 |
| Fair Value Estimate |
$790.88 |
$1,117.50 |
| Upside to Fair Value |
-2.2%
|
+24.7%
|
| Market Cap |
$372.6B |
$397.6B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
32.7x
|
| Price / Sales |
5.0x
|
1.3x
|
| Price / FCF |
41.4x
|
42.4x
|
| Revenue Growth YoY |
+24.0%
|
+11.1%
|
| Gross Margin |
33.9%
|
17.5%
|
| Operating Margin |
17.5%
|
3.9%
|
| Return on Equity |
54.1%
|
28.0%
|
| Dividend Yield |
0.76% |
0.62% |
| FCF Yield |
2.41%
|
2.36%
|
| 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%…
Costco Wholesale Corporation operates a global network of membership-based warehouse clubs, selling branded and private-label merchandise across the United States, Canada, Mexico, Japan, the United Kingdom, South Korea, Taiwan, Australia, Spain, France, Iceland, and China, supplemented by pharmacies, optical centers, food courts, hearing aid centers, tire installation, 636 gas stations, and e-com…
Accumulation Zones
| Metric |
CAT |
COST |
| Zone Low |
$593.16 |
$838.12 |
| Zone High |
$672.25 |
$949.88 |
| In Buy Zone? |
No
|
Yes
|