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 2026-04-11.
Caterpillar Inc. · Industrials
$792.65
-8.8% upside to fair value
Grade D
VS
Chevron Corporation · Energy
$188.52
-23.1% upside to fair value
Grade D
QuantHub Verdict
CAT has more upside to fair value
(-8.8%).
CVX trades at a lower forward P/E
(22.9x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
CVX |
| Current Price |
$792.65 |
$188.52 |
| Fair Value Estimate |
$723.13 |
$145.00 |
| Upside to Fair Value |
-8.8%
|
-23.1%
|
| Market Cap |
$370.9B |
$376.9B |
| Forward P/E |
41.7x
|
22.9x
|
| EV / EBITDA |
27.2x
|
7.8x
|
| Price / Sales |
5.5x
|
1.5x
|
| Price / FCF |
36.1x
|
17.0x
|
| Revenue Growth YoY |
+8.5%
|
-4.6%
|
| Gross Margin |
32.3%
|
30.4%
|
| Operating Margin |
16.6%
|
9.0%
|
| Return on Equity |
45.1%
|
6.6%
|
| Dividend Yield |
0% |
4.52% |
| FCF Yield |
2.77%
|
5.89%
|
| Analyst Consensus |
Buy
|
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…
Chevron Corporation is a leading integrated oil and gas major with global upstream and downstream operations, a fortress balance sheet, and a shareholder-friendly capital return program. Under CEO Mike Wirth, the company has prioritized disciplined capital allocation, returning over $27 billion to shareholders in 2024 alone through buybacks and dividends, while maintaining a 38-year streak of con…
Accumulation Zones
| Metric |
CAT |
CVX |
| Zone Low |
$542.35 |
$108.75 |
| Zone High |
$614.66 |
$123.25 |
| In Buy Zone? |
No
|
No
|