CAT vs GOOG: Which Is the Better Buy?

Side-by-side comparison of Caterpillar Inc. and Alphabet Inc. — fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-07-13.
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C High Quality
VS
Alphabet Inc. · Communication Services
$355.03
-17.2% upside to fair value
Grade D High Quality
QuantHub Verdict
GOOG has more upside to fair value (-17.2%). GOOG trades at a lower forward P/E (27.0x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric CAT GOOG
Current Price $940.12 $355.03
Fair Value Estimate $569.47 $294.10
Upside to Fair Value -39.4% -17.2%
Market Cap $433.1B $4,320.1B
Forward P/E 46.6x 27.0x
EV / EBITDA 29.7x 20.0x
Price / Sales 6.1x 10.2x
Price / FCF 37.8x 67.0x
Revenue Growth YoY +22.2% +21.8%
Gross Margin 32.5% 60.4%
Operating Margin 16.6% 32.7%
Return on Equity 47.5% 39.0%
Dividend Yield 0% 0%
FCF Yield 2.64% 1.49%
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…
GOOG — Alphabet Inc.
Alphabet Inc. operates as a global leader in internet content and information services, primarily through its dominant search engine, advertising platforms, and cloud services. The company exhibits high business quality with a durable competitive moat supported by strong network effects, brand recognition, and intangible assets. Alphabet's financials reflect robust profitability with a net margin…
Accumulation Zones
Metric CAT GOOG
Zone Low $427.10 $220.58
Zone High $484.05 $249.99
In Buy Zone? No No
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