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 2026-05-13.
Caterpillar Inc. · Industrials
$912.14
-47.9% upside to fair value
Grade D
High Quality
VS
GE Aerospace · Industrials
$284.60
-24.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
GE has more upside to fair value
(-24.0%).
GE trades at a lower forward P/E
(34.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
GE |
| Current Price |
$912.14 |
$284.60 |
| Fair Value Estimate |
$475.00 |
$216.30 |
| Upside to Fair Value |
-47.9%
|
-24.0%
|
| Market Cap |
$420.2B |
$297.4B |
| Forward P/E |
44.9x
|
34.1x
|
| EV / EBITDA |
30.0x
|
27.9x
|
| Price / Sales |
5.9x
|
6.2x
|
| Price / FCF |
36.7x
|
39.8x
|
| Revenue Growth YoY |
+22.2%
|
+24.7%
|
| Gross Margin |
32.5%
|
34.8%
|
| Operating Margin |
16.6%
|
18.5%
|
| Return on Equity |
47.5%
|
46.4%
|
| Dividend Yield |
1.5% |
0% |
| FCF Yield |
2.73%
|
2.51%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
Caterpillar is the world's leading manufacturer of construction and mining equipment, with diversified revenue across Construction Industries, Resource Industries, Energy & Transportation, and Cat Financial. Q1 2026 results reported April 30 showed revenue of $17.4 billion (+22.2% YoY) and EPS of $5.50 (+30.3% YoY), driven by powerful demand from data center build-outs (large engine and power gen…
GE Aerospace is a leading player in the aerospace and defense industry, specializing in jet engines and propulsion technologies with a strong presence in commercial engines and defense propulsion segments. The company benefits from a high-quality management team led by CEO H. Lawrence Culp, Jr., who has extensive experience in operational transformation and aerospace leadership. Despite a premium…
Accumulation Zones
| Metric |
CAT |
GE |
| Zone Low |
$356.00 |
$162.23 |
| Zone High |
$404.00 |
$183.86 |
| In Buy Zone? |
No
|
No
|