CAT vs CVX: Which Is the Better Buy?

Side-by-side comparison of Caterpillar Inc. and Chevron Corporation — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-07-09.

CAT

Caterpillar Inc. · Industrials

$940.12

-39.4% upside to fair value

Grade C High Quality

CVX

Chevron Corporation · Energy

$175.91

-3.4% upside to fair value

Grade D

QuantHub Verdict

CVX has more upside to fair value (-3.4%). CVX trades at a lower forward P/E (30.4x). These are model outputs — not personalized investment advice. See all research →

Valuation & Fundamentals

Metric	CAT	CVX
Current Price	$940.12	$175.91
Fair Value Estimate	$569.47	$169.96
Upside to Fair Value	-39.4%	-3.4%
Market Cap	$433.1B	$350.3B
Forward P/E	46.6x	30.4x
EV / EBITDA	29.7x	9.4x
Price / Sales	6.1x	1.9x
Price / FCF	37.8x	26.2x
Revenue Growth YoY	+22.2%	+3.2%
Gross Margin	32.5%	25.4%
Operating Margin	16.6%	8.4%
Return on Equity	47.5%	6.2%
Dividend Yield	0%	0%
FCF Yield	2.64%	3.82%
Analyst Consensus	Hold	Buy

Investment Thesis

CAT — Caterpillar Inc.

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…

CVX — Chevron Corporation

Chevron Corporation operates as a leading integrated oil and gas company within the energy sector, demonstrating medium business quality with a stable competitive position but facing earnings pressure as evidenced by a 36.9% decline in earnings in the most recent quarter. The stock trades at a premium valuation with a P/E trailing and forward of 30.38, EV/EBITDA of 9.41, and a P/FCF of 26.2, refl…

Accumulation Zones

Metric	CAT	CVX
Zone Low	$427.10	$127.47
Zone High	$484.05	$144.47
In Buy Zone?	No	No

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