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 2026-09-24.
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
VS
Chevron Corporation · Energy
$205.52
+35.9% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
CVX has more upside to fair value
(+35.9%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
CVX |
| Current Price |
$808.99 |
$205.52 |
| Fair Value Estimate |
$790.88 |
$279.29 |
| Upside to Fair Value |
-2.2%
|
+35.9%
|
| Market Cap |
$372.6B |
$409.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
7.8x
|
| Price / Sales |
5.0x
|
2.0x
|
| Price / FCF |
41.4x
|
15.0x
|
| Revenue Growth YoY |
+24.0%
|
+51.4%
|
| Gross Margin |
33.9%
|
31.0%
|
| Operating Margin |
17.5%
|
15.8%
|
| Return on Equity |
54.1%
|
11.0%
|
| Dividend Yield |
0.76% |
3.43% |
| FCF Yield |
2.41%
|
6.67%
|
| Analyst Consensus |
Buy
|
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%…
Chevron is a global integrated oil and gas major organized into Upstream and Downstream segments, spanning crude oil and natural gas exploration, LNG processing and transport, refining, petrochemicals, and lubricants, with 43,039 full-time employees and a market capitalization of $409.31 billion at a current price of $205.52. The business quality is high: it generates $13.71 of free cash flow per…
Accumulation Zones
| Metric |
CAT |
CVX |
| Zone Low |
$593.16 |
$209.47 |
| Zone High |
$672.25 |
$237.40 |
| In Buy Zone? |
No
|
Yes
|