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 2026-07-16.

CAT

Caterpillar Inc. · Industrials

$940.12

-39.4% upside to fair value

Grade C High Quality

GE Aerospace · Industrials

$360.35

-25.9% upside to fair value

Grade D High Quality

QuantHub Verdict

GE has more upside to fair value (-25.9%). GE trades at a lower forward P/E (42.3x). These are model outputs — not personalized investment advice. See all research →

Valuation & Fundamentals

Metric	CAT	GE
Current Price	$940.12	$360.35
Fair Value Estimate	$569.47	$267.03
Upside to Fair Value	-39.4%	-25.9%
Market Cap	$433.1B	$376.5B
Forward P/E	46.6x	42.3x
EV / EBITDA	29.7x	33.4x
Price / Sales	6.1x	7.8x
Price / FCF	37.8x	50.5x
Revenue Growth YoY	+22.2%	+21.1%
Gross Margin	32.5%	36.1%
Operating Margin	16.6%	21.0%
Return on Equity	47.5%	46.2%
Dividend Yield	0%	0%
FCF Yield	2.64%	1.98%
Analyst Consensus	Hold	Strong Buy

Investment Thesis

CAT — Caterpillar Inc.

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…

GE — GE Aerospace

GE Aerospace operates in the Industrials sector within the Aerospace & Defense industry, delivering high-quality aerospace products and services. The business demonstrates strong fundamentals with a high return on equity of 46.2%, robust revenue growth of 21.1% in the most recent quarter, and solid earnings growth of 16.9% in the same period. Margins are healthy, with a gross margin of 36.1%, ope…

Accumulation Zones

Metric	CAT	GE
Zone Low	$427.10	$200.27
Zone High	$484.05	$226.98
In Buy Zone?	No	No

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