CAT vs GE: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and GE Aerospace — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-21.
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
VS
GE Aerospace · Industrials
$312.90
+3.4% upside to fair value
Med Conviction
Grade C
High Quality
QuantHub Verdict
GE has more upside to fair value
(+3.4%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
GE |
| Current Price |
$808.99 |
$312.90 |
| Fair Value Estimate |
$790.88 |
$323.41 |
| Upside to Fair Value |
-2.2%
|
+3.4%
|
| Market Cap |
$372.6B |
$324.6B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
27.4x
|
| Price / Sales |
5.0x
|
6.4x
|
| Price / FCF |
41.4x
|
38.7x
|
| Revenue Growth YoY |
+24.0%
|
+21.1%
|
| Gross Margin |
33.9%
|
35.4%
|
| Operating Margin |
17.5%
|
20.8%
|
| Return on Equity |
54.1%
|
49.0%
|
| Dividend Yield |
0.76% |
0.53% |
| FCF Yield |
2.41%
|
2.58%
|
| Analyst Consensus |
Buy
|
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%…
GE Aerospace is a high-quality commercial and military propulsion company whose approximately 50,000 commercial-engine and 30,000 military-engine installed base, long-term service agreements, proprietary repair capabilities and certification barriers support recurring aftermarket economics. The business is executing strongly: revenue grew 21.1% year over year in the most recent quarter, while Q2 …
Accumulation Zones
| Metric |
CAT |
GE |
| Zone Low |
$593.16 |
$242.56 |
| Zone High |
$672.25 |
$274.90 |
| In Buy Zone? |
No
|
No
|