CAT vs CRM: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Salesforce, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-16.
Caterpillar Inc. · Industrials
$792.65
-8.8% upside to fair value
Grade D
VS
Salesforce, Inc. · Technology
$181.22
+161.6% upside to fair value
High Conviction
Grade A-
QuantHub Verdict
CRM has more upside to fair value
(+161.6%).
CRM trades at a lower forward P/E
(22.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
CRM |
| Current Price |
$792.65 |
$181.22 |
| Fair Value Estimate |
$723.13 |
$474.00 |
| Upside to Fair Value |
-8.8%
|
+161.6%
|
| Market Cap |
$370.9B |
$169.8B |
| Forward P/E |
41.7x
|
22.7x
|
| EV / EBITDA |
27.2x
|
—
|
| Price / Sales |
5.5x
|
4.1x
|
| Price / FCF |
36.1x
|
11.8x
|
| Revenue Growth YoY |
+8.5%
|
+9.2%
|
| Gross Margin |
32.3%
|
77.7%
|
| Operating Margin |
16.6%
|
21.5%
|
| Return on Equity |
45.1%
|
12.4%
|
| Dividend Yield |
0% |
— |
| FCF Yield |
2.77%
|
8.5%
|
| 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…
Salesforce is the leading global provider of CRM software, offering a strong competitive moat through market dominance and high switching costs, complemented by acquisitions like Slack and Tableau, with excellent margins above 77% gross and robust free cash flow of $15.16 per share. Despite decelerating revenue growth at 9.2% YoY and negative earnings growth of -6.9%, the business remains high-qu…
Accumulation Zones
| Metric |
CAT |
CRM |
| Zone Low |
$542.35 |
$356.00 |
| Zone High |
$614.66 |
$403.00 |
| In Buy Zone? |
No
|
Yes
|