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 2026-07-08.
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C
High Quality
VS
Salesforce, Inc. · Technology
$169.52
+45.0% upside to fair value
Grade A
High Quality
QuantHub Verdict
CRM has more upside to fair value
(+45.0%).
CRM trades at a lower forward P/E
(19.6x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
CRM |
| Current Price |
$940.12 |
$169.52 |
| Fair Value Estimate |
$569.47 |
$245.80 |
| Upside to Fair Value |
-39.4%
|
+45.0%
|
| Market Cap |
$433.1B |
$138.8B |
| Forward P/E |
46.6x
|
19.6x
|
| EV / EBITDA |
29.7x
|
12.3x
|
| Price / Sales |
6.1x
|
3.2x
|
| Price / FCF |
37.8x
|
9.5x
|
| Revenue Growth YoY |
+22.2%
|
+13.3%
|
| Gross Margin |
32.5%
|
77.6%
|
| Operating Margin |
16.6%
|
21.9%
|
| Return on Equity |
47.5%
|
14.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.64%
|
10.56%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
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…
Salesforce, Inc. is a leading provider of cloud-based software applications primarily focused on customer relationship management (CRM). The company exhibits high business quality with a durable competitive moat supported by strong gross margins of 77.6%, solid operating margin of 21.9%, and a robust return on equity of 14.9%. Recent quarterly revenue growth of 13.3% and earnings growth of 36.7% …
Accumulation Zones
| Metric |
CAT |
CRM |
| Zone Low |
$427.10 |
$184.35 |
| Zone High |
$484.05 |
$208.93 |
| In Buy Zone? |
No
|
Yes
|