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 2026-06-20.
Caterpillar Inc. · Industrials
$985.82
-39.7% upside to fair value
Grade C
High Quality
VS
Deere & Company · Industrials
$589.24
-29.6% upside to fair value
Grade D
High Quality
QuantHub Verdict
DE has more upside to fair value
(-29.6%).
DE trades at a lower forward P/E
(33.3x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
DE |
| Current Price |
$985.82 |
$589.24 |
| Fair Value Estimate |
$594.71 |
$414.61 |
| Upside to Fair Value |
-39.7%
|
-29.6%
|
| Market Cap |
$454.1B |
$159.1B |
| Forward P/E |
48.9x
|
33.3x
|
| EV / EBITDA |
31.0x
|
18.8x
|
| Price / Sales |
6.4x
|
3.4x
|
| Price / FCF |
39.7x
|
42.2x
|
| 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 |
2.52%
|
2.37%
|
| Analyst Consensus |
Buy
|
Hold
|
Investment Thesis
Caterpillar Inc. is a leading global manufacturer of construction, mining, and power generation equipment with a durable competitive moat supported by its #1 global market share in core construction and mining equipment segments, typically in the 20-30%+ range. The company benefits from a stable and experienced management team, strong capital allocation focused on share repurchases and dividends,…
Deere & Company is a leading global manufacturer of agricultural, construction, and forestry machinery with a durable competitive moat anchored by its number one market share in large agricultural equipment and a dense dealer network. The company benefits from embedded precision agriculture technology that widens its competitive gap, particularly in North America where it holds 40 to 60 percent m…
Accumulation Zones
| Metric |
CAT |
DE |
| Zone Low |
$446.03 |
$310.96 |
| Zone High |
$505.50 |
$352.42 |
| In Buy Zone? |
No
|
No
|