CAT vs GOOGL: 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 2026-04-10.
Caterpillar Inc. · Industrials
$792.65
-8.8% upside to fair value
Grade D
VS
Alphabet Inc. · Communication Services
$317.41
-4.5% upside to fair value
Grade D
High Quality
QuantHub Verdict
GOOGL has more upside to fair value
(-4.5%).
GOOGL trades at a lower forward P/E
(29.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
GOOGL |
| Current Price |
$792.65 |
$317.41 |
| Fair Value Estimate |
$723.13 |
$303.05 |
| Upside to Fair Value |
-8.8%
|
-4.5%
|
| Market Cap |
$370.9B |
$3,839.7B |
| Forward P/E |
41.7x
|
29.0x
|
| EV / EBITDA |
27.2x
|
21.5x
|
| Price / Sales |
5.5x
|
9.5x
|
| Price / FCF |
36.1x
|
52.4x
|
| 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%
|
1.91%
|
| 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 and information services, primarily through its dominant search engine, advertising platforms, and cloud computing services. The company benefits from durable competitive moats including browser and mobile OS dominance, strong brand recognition, and advanced AI infrastructure investments. Despite strong revenue growth of 11.3% year-ove…
Accumulation Zones
| Metric |
CAT |
GOOGL |
| Zone Low |
$542.35 |
$227.29 |
| Zone High |
$614.66 |
$257.59 |
| In Buy Zone? |
No
|
No
|