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 2026-04-10.
Caterpillar Inc. · Industrials
$792.65
-8.8% upside to fair value
Grade D
VS
Costco Wholesale Corporation · Consumer Defensive
$1,002.88
-35.4% upside to fair value
Grade C
High Quality
QuantHub Verdict
CAT has more upside to fair value
(-8.8%).
CAT trades at a lower forward P/E
(41.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
COST |
| Current Price |
$792.65 |
$1,002.88 |
| Fair Value Estimate |
$723.13 |
$648.03 |
| Upside to Fair Value |
-8.8%
|
-35.4%
|
| Market Cap |
$370.9B |
$444.9B |
| Forward P/E |
41.7x
|
52.1x
|
| EV / EBITDA |
27.2x
|
31.0x
|
| Price / Sales |
5.5x
|
1.6x
|
| Price / FCF |
36.1x
|
49.0x
|
| Revenue Growth YoY |
+8.5%
|
+3.4%
|
| Gross Margin |
32.3%
|
12.9%
|
| Operating Margin |
16.6%
|
3.8%
|
| Return on Equity |
45.1%
|
28.8%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.77%
|
2.04%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, engines, and industrial machinery, with a strong global footprint and a record $67.6 billion in revenues for 2025. The company benefits from a durable competitive position supported by a broad product portfolio and a large installed base, but faces margin pressure from tariffs and cost inflation. Despite so…
Costco Wholesale Corporation operates a global membership-based warehouse club model with over 900 warehouses across 14 countries, generating $254 billion in fiscal 2024 revenue. The company benefits from a durable competitive moat driven by scale advantages, a loyal membership base with high renewal rates, and superior employee retention through better wages and benefits. Despite steady revenue …
Accumulation Zones
| Metric |
CAT |
COST |
| Zone Low |
$542.35 |
$486.02 |
| Zone High |
$614.66 |
$550.83 |
| In Buy Zone? |
No
|
No
|