CAT vs GS: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and The Goldman Sachs Group, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Caterpillar Inc. · Industrials
$792.65
-8.8% upside to fair value
Grade D
VS
The Goldman Sachs Group, Inc. · Financial Services
$907.80
-3.1% upside to fair value
Low Conviction
Grade C+
QuantHub Verdict
GS has more upside to fair value
(-3.1%).
GS trades at a lower forward P/E
(15.6x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
GS |
| Current Price |
$792.65 |
$907.80 |
| Fair Value Estimate |
$723.13 |
$880.00 |
| Upside to Fair Value |
-8.8%
|
-3.1%
|
| Market Cap |
$370.9B |
$269.4B |
| Forward P/E |
41.7x
|
15.6x
|
| EV / EBITDA |
27.2x
|
29.7x
|
| Price / Sales |
5.5x
|
2.1x
|
| Price / FCF |
36.1x
|
—
|
| Revenue Growth YoY |
+8.5%
|
+9.0%
|
| Gross Margin |
32.3%
|
47.5%
|
| Operating Margin |
16.6%
|
17.5%
|
| Return on Equity |
45.1%
|
13.8%
|
| Dividend Yield |
0% |
1.71% |
| FCF Yield |
2.77%
|
—
|
| Analyst Consensus |
Buy
|
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…
Goldman Sachs remains the premier global investment bank with dominant franchises in M&A advisory, equities trading, and asset management. FY2025 delivered $58.3B net revenues, 15% ROE, and $51.32 diluted EPS, powered by record equities trading and a resurgent IB pipeline. The stock has pulled back 8% from January highs near $985 but still trades at 2.27x book value, well above the 5-year median …
Accumulation Zones
| Metric |
CAT |
GS |
| Zone Low |
$542.35 |
$600.00 |
| Zone High |
$614.66 |
$680.00 |
| In Buy Zone? |
No
|
No
|