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 2026-05-13.
Caterpillar Inc. · Industrials
$912.14
-47.9% upside to fair value
Grade D
High Quality
VS
Alphabet Inc. · Communication Services
$339.40
-6.2% upside to fair value
Grade D
High Quality
QuantHub Verdict
GOOG has more upside to fair value
(-6.2%).
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 |
$912.14 |
$339.40 |
| Fair Value Estimate |
$475.00 |
$318.47 |
| Upside to Fair Value |
-47.9%
|
-6.2%
|
| Market Cap |
$420.2B |
$4,105.7B |
| Forward P/E |
44.9x
|
31.2x
|
| EV / EBITDA |
30.0x
|
23.1x
|
| Price / Sales |
5.9x
|
10.3x
|
| Price / FCF |
36.7x
|
56.4x
|
| Revenue Growth YoY |
+22.2%
|
+11.3%
|
| Gross Margin |
32.5%
|
59.7%
|
| Operating Margin |
16.6%
|
32.0%
|
| Return on Equity |
47.5%
|
35.0%
|
| Dividend Yield |
1.5% |
0% |
| FCF Yield |
2.73%
|
1.77%
|
| 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…
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 |
$356.00 |
$238.85 |
| Zone High |
$404.00 |
$270.70 |
| In Buy Zone? |
No
|
No
|