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 2026-04-11.
Caterpillar Inc. · Industrials
$792.65
-8.8% upside to fair value
Grade D
VS
GE Aerospace · Industrials
$308.35
-44.2% upside to fair value
Grade D
High Quality
QuantHub Verdict
CAT has more upside to fair value
(-8.8%).
GE trades at a lower forward P/E
(37.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
GE |
| Current Price |
$792.65 |
$308.35 |
| Fair Value Estimate |
$723.13 |
$171.94 |
| Upside to Fair Value |
-8.8%
|
-44.2%
|
| Market Cap |
$370.9B |
$325.2B |
| Forward P/E |
41.7x
|
37.8x
|
| EV / EBITDA |
27.2x
|
27.9x
|
| Price / Sales |
5.5x
|
7.2x
|
| Price / FCF |
36.1x
|
45.2x
|
| Revenue Growth YoY |
+8.5%
|
+18.5%
|
| Gross Margin |
32.3%
|
36.8%
|
| Operating Margin |
16.6%
|
19.1%
|
| Return on Equity |
45.1%
|
46.6%
|
| Dividend Yield |
0% |
0.44% |
| FCF Yield |
2.77%
|
2.21%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, engines, and industrial machinery, with a strong global footprint and a record $67.6 billion in revenues for 2025. The company benefits from a durable competitive position supported by a broad product portfolio and a large installed base, but faces margin pressure from tariffs and cost inflation. Despite so…
GE Aerospace is the dominant pure-play aerospace engine company globally, operating through Commercial Engines and Services and Defense and Propulsion Technologies segments. The company delivered 18.5% revenue growth to $45.9 billion in 2025, driven by LEAP engine deliveries, a $190 billion backlog, and robust aftermarket services that generate majority profits. CEO Larry Culp has executed a rema…
Accumulation Zones
| Metric |
CAT |
GE |
| Zone Low |
$542.35 |
$128.96 |
| Zone High |
$614.66 |
$146.15 |
| In Buy Zone? |
No
|
No
|