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 2026-06-20.
Caterpillar Inc. · Industrials
$985.82
-39.7% upside to fair value
Grade C
High Quality
VS
Danaher Corporation · Healthcare
$177.17
+8.9% upside to fair value
Grade B
High Quality
QuantHub Verdict
DHR has more upside to fair value
(+8.9%).
DHR trades at a lower forward P/E
(34.1x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
DHR |
| Current Price |
$985.82 |
$177.17 |
| Fair Value Estimate |
$594.71 |
$192.90 |
| Upside to Fair Value |
-39.7%
|
+8.9%
|
| Market Cap |
$454.1B |
$125.4B |
| Forward P/E |
48.9x
|
34.1x
|
| EV / EBITDA |
31.0x
|
20.8x
|
| Price / Sales |
6.4x
|
5.1x
|
| Price / FCF |
39.7x
|
23.7x
|
| Revenue Growth YoY |
+22.2%
|
+3.7%
|
| Gross Margin |
32.5%
|
60.7%
|
| Operating Margin |
16.6%
|
21.0%
|
| Return on Equity |
47.5%
|
7.1%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.52%
|
4.22%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
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,…
Danaher Corporation operates in the healthcare sector, specializing in medical diagnostics and research tools through three balanced platforms: Biotechnology, Life Sciences, and Diagnostics. The company benefits from a durable competitive moat supported by the Danaher Business System, disciplined capital allocation, and a platform-centric organizational structure. Despite modest revenue growth of…
Accumulation Zones
| Metric |
CAT |
DHR |
| Zone Low |
$446.03 |
$144.68 |
| Zone High |
$505.50 |
$163.97 |
| In Buy Zone? |
No
|
No
|