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 2026-05-04.
Caterpillar Inc. · Industrials
$794.65
+30.6% upside to fair value
Grade C
High Quality
VS
Deere & Company · Industrials
$578.39
+22.4% upside to fair value
Grade C
QuantHub Verdict
CAT has more upside to fair value
(+30.6%).
DE trades at a lower forward P/E
(32.5x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
DE |
| Current Price |
$794.65 |
$578.39 |
| Fair Value Estimate |
$1,037.56 |
$708.19 |
| Upside to Fair Value |
+30.6%
|
+22.4%
|
| Market Cap |
$371.9B |
$156.2B |
| Forward P/E |
41.8x
|
32.5x
|
| EV / EBITDA |
27.3x
|
18.4x
|
| Price / Sales |
5.5x
|
3.4x
|
| Price / FCF |
36.2x
|
43.7x
|
| Revenue Growth YoY |
+18.0%
|
+16.3%
|
| Gross Margin |
32.3%
|
35.6%
|
| Operating Margin |
16.6%
|
18.5%
|
| Return on Equity |
45.1%
|
18.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.76%
|
2.29%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, with a diversified revenue base across Energy and Transportation, Construction Industries, Resource Industries, and Financial Products. The company benefits from a durable competitive moat driven by its extensive global operations, strong brand, and operational excellence. Despite strong revenue growth of 1…
Deere & Company is a leading manufacturer of agricultural, construction, and forestry machinery, with a strong position in production and precision agriculture, small agriculture and turf, and construction and forestry segments. The company benefits from a durable competitive moat driven by its brand, intangible assets, and switching costs, supported by a CEO with deep institutional knowledge and…
Accumulation Zones
| Metric |
CAT |
DE |
| Zone Low |
$778.17 |
$531.14 |
| Zone High |
$881.93 |
$601.96 |
| In Buy Zone? |
Yes
|
Yes
|