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 2026-04-18.
Caterpillar Inc. · Industrials
$792.65
-8.8% upside to fair value
Grade D
VS
Alphabet Inc. · Communication Services
$339.40
-4.4% upside to fair value
Grade D
High Quality
QuantHub Verdict
GOOG has more upside to fair value
(-4.4%).
GOOG trades at a lower forward P/E
(31.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
GOOG |
| Current Price |
$792.65 |
$339.40 |
| Fair Value Estimate |
$723.13 |
$324.34 |
| Upside to Fair Value |
-8.8%
|
-4.4%
|
| Market Cap |
$370.9B |
$4,105.7B |
| Forward P/E |
41.7x
|
31.2x
|
| EV / EBITDA |
27.2x
|
23.1x
|
| Price / Sales |
5.5x
|
10.3x
|
| Price / FCF |
36.1x
|
56.4x
|
| Revenue Growth YoY |
+8.5%
|
+11.3%
|
| Gross Margin |
32.3%
|
59.7%
|
| Operating Margin |
16.6%
|
32.0%
|
| Return on Equity |
45.1%
|
35.0%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.77%
|
1.77%
|
| 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…
Alphabet Inc. operates as a global leader in internet content, advertising, cloud computing, and AI technologies, with dominant market positions in search, browser, and mobile operating systems. The company benefits from a high-quality business model characterized by a durable competitive moat, strong revenue growth of 11.3% year-over-year, and robust profitability with net margins of 32.8%. Desp…
Accumulation Zones
| Metric |
CAT |
GOOG |
| Zone Low |
$542.35 |
$243.25 |
| Zone High |
$614.66 |
$275.69 |
| In Buy Zone? |
No
|
No
|