CAT vs DE: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Deere & Company — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-09.
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C
High Quality
VS
Deere & Company · Industrials
$596.74
-29.8% upside to fair value
Grade C
High Quality
QuantHub Verdict
DE has more upside to fair value
(-29.8%).
DE trades at a lower forward P/E
(33.7x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
DE |
| Current Price |
$940.12 |
$596.74 |
| Fair Value Estimate |
$569.47 |
$418.72 |
| Upside to Fair Value |
-39.4%
|
-29.8%
|
| Market Cap |
$433.1B |
$161.1B |
| Forward P/E |
46.6x
|
33.7x
|
| EV / EBITDA |
29.7x
|
19.0x
|
| Price / Sales |
6.1x
|
3.4x
|
| Price / FCF |
37.8x
|
42.8x
|
| Revenue Growth YoY |
+22.2%
|
+6.7%
|
| Gross Margin |
32.5%
|
35.4%
|
| Operating Margin |
16.6%
|
18.4%
|
| Return on Equity |
47.5%
|
18.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.64%
|
2.34%
|
| Analyst Consensus |
Hold
|
Hold
|
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…
Deere & Company operates in the agricultural machinery sector, providing durable equipment critical to farming and construction industries. The business quality is high, supported by a strong 18.3% return on equity and solid gross and operating margins of 35.4% and 18.4%, respectively. However, the stock is currently overvalued, trading approximately 30% above its fair value estimate of $418.72, …
Accumulation Zones
| Metric |
CAT |
DE |
| Zone Low |
$427.10 |
$314.04 |
| Zone High |
$484.05 |
$355.91 |
| In Buy Zone? |
No
|
No
|