CAT vs GEV: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and GE Vernova Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-25.
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C
High Quality
VS
GE Vernova Inc. · Industrials
$1,014.75
-16.2% upside to fair value
Med Conviction
Grade C+
QuantHub Verdict
GEV has more upside to fair value
(-16.2%).
GEV trades at a lower forward P/E
(34.3x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
GEV |
| Current Price |
$940.12 |
$1,014.75 |
| Fair Value Estimate |
$569.47 |
$850.00 |
| Upside to Fair Value |
-39.4%
|
-16.2%
|
| Market Cap |
$433.1B |
$270.3B |
| Forward P/E |
46.6x
|
34.3x
|
| EV / EBITDA |
29.7x
|
25.6x
|
| Price / Sales |
6.1x
|
6.6x
|
| Price / FCF |
37.8x
|
22.0x
|
| Revenue Growth YoY |
+22.2%
|
+15.0%
|
| Gross Margin |
32.5%
|
21.3%
|
| Operating Margin |
16.6%
|
5.9%
|
| Return on Equity |
47.5%
|
30.0%
|
| Dividend Yield |
0% |
0.17% |
| FCF Yield |
2.64%
|
4.5%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
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 Vernova is the premier pure-play on the electricity side of the AI infrastructure supercycle. Its Power (heavy-duty gas turbines) and Electrification (grid equipment) segments are structurally supply-constrained, backed by a record $176B backlog that management says is 'mostly sold out through 2030.' The company raised FY2026 guidance for a second straight quarter to $45.5-46.5B revenue and $1…
Accumulation Zones
| Metric |
CAT |
GEV |
| Zone Low |
$427.10 |
$640.00 |
| Zone High |
$484.05 |
$723.00 |
| In Buy Zone? |
No
|
No
|