CAT vs DHR: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Danaher Corporation — 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
Danaher Corporation · Healthcare
$174.04
+13.2% upside to fair value
Grade B
QuantHub Verdict
CAT has more upside to fair value
(+30.6%).
DHR trades at a lower forward P/E
(33.4x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
DHR |
| Current Price |
$794.65 |
$174.04 |
| Fair Value Estimate |
$1,037.56 |
$197.01 |
| Upside to Fair Value |
+30.6%
|
+13.2%
|
| Market Cap |
$371.9B |
$123.2B |
| Forward P/E |
41.8x
|
33.4x
|
| EV / EBITDA |
27.3x
|
20.3x
|
| Price / Sales |
5.5x
|
5.0x
|
| Price / FCF |
36.2x
|
23.3x
|
| Revenue Growth YoY |
+18.0%
|
+3.7%
|
| Gross Margin |
32.3%
|
60.7%
|
| Operating Margin |
16.6%
|
21.0%
|
| Return on Equity |
45.1%
|
7.1%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.76%
|
4.3%
|
| Analyst Consensus |
Buy
|
Strong 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…
Danaher Corporation is a diversified healthcare company focused on medical diagnostics, life sciences, and biotechnology, generating approximately $24 billion in revenue with a strong recurring revenue base of over 81%. The company benefits from a high gross margin of 60.7% and solid operating margin of 21%, supported by a seasoned management team with a proven capital allocation track record inc…
Accumulation Zones
| Metric |
CAT |
DHR |
| Zone Low |
$778.17 |
$147.76 |
| Zone High |
$881.93 |
$167.46 |
| In Buy Zone? |
Yes
|
No
|