CAT vs ETN: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Eaton Corporation plc — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-08-06.
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C
High Quality
VS
Eaton Corporation plc · Industrials
$447.28
-9.5% upside to fair value
Med Conviction
Grade C+
QuantHub Verdict
ETN has more upside to fair value
(-9.5%).
ETN trades at a lower forward P/E
(33.2x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
ETN |
| Current Price |
$940.12 |
$447.28 |
| Fair Value Estimate |
$569.47 |
$405.00 |
| Upside to Fair Value |
-39.4%
|
-9.5%
|
| Market Cap |
$433.1B |
$173.7B |
| Forward P/E |
46.6x
|
33.2x
|
| EV / EBITDA |
29.7x
|
30.0x
|
| Price / Sales |
6.1x
|
5.8x
|
| Price / FCF |
37.8x
|
38.6x
|
| Revenue Growth YoY |
+22.2%
|
+21.0%
|
| Gross Margin |
32.5%
|
35.9%
|
| Operating Margin |
16.6%
|
17.7%
|
| Return on Equity |
47.5%
|
18.9%
|
| Dividend Yield |
0% |
0.98% |
| FCF Yield |
2.64%
|
2.59%
|
| Analyst Consensus |
Hold
|
Buy
|
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…
Eaton is a 115-year-old power management company whose Electrical Americas, Electrical Global and Aerospace segments have become a core beneficiary of the same AI data-center, grid modernization and reshoring supercycle driving GE Vernova and Vertiv. Q2 2026 results were record-setting: revenue of $8.5 billion (up 21% year over year, 14% organic), adjusted EPS of $3.15, and segment margins of 23.…
Accumulation Zones
| Metric |
CAT |
ETN |
| Zone Low |
$427.10 |
$305.00 |
| Zone High |
$484.05 |
$345.00 |
| In Buy Zone? |
No
|
No
|