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 2026-09-24.
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
VS
Eaton Corporation plc · Industrials
$438.76
+32.2% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
ETN has more upside to fair value
(+32.2%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
ETN |
| Current Price |
$808.99 |
$438.76 |
| Fair Value Estimate |
$790.88 |
$579.99 |
| Upside to Fair Value |
-2.2%
|
+32.2%
|
| Market Cap |
$372.6B |
$170.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
29.6x
|
| Price / Sales |
5.0x
|
5.7x
|
| Price / FCF |
41.4x
|
37.9x
|
| Revenue Growth YoY |
+24.0%
|
+21.4%
|
| Gross Margin |
33.9%
|
35.9%
|
| Operating Margin |
17.5%
|
17.7%
|
| Return on Equity |
54.1%
|
19.6%
|
| Dividend Yield |
0.76% |
0.99% |
| FCF Yield |
2.41%
|
2.64%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Caterpillar is the world's premier manufacturer of heavy construction and mining equipment, diesel and natural gas power units, and industrial gas turbines, organized across Construction Industries, Resource Industries, Energy & Transportation, and Financial Products, with 118,000 employees and a century-old brand. Business quality is high: return on equity of 54.1%, TTM operating margin of 17.5%…
Eaton Corporation plc is a Dublin-headquartered power management company with roughly 97,303 employees, operating electrical, aerospace, vehicle and eMobility segments that supply power distribution, circuit protection, power quality and reliability equipment and services. The business quality is high: TTM gross margin of 35.9%, TTM operating margin of 17.7%, TTM net margin of 12.8% and ROE of 19…
Accumulation Zones
| Metric |
CAT |
ETN |
| Zone Low |
$593.16 |
$434.99 |
| Zone High |
$672.25 |
$492.99 |
| In Buy Zone? |
No
|
Yes
|