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 2026-07-14.
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C High Quality
VS
The Goldman Sachs Group, Inc. · Financial Services
$1,045.91
-45.0% upside to fair value
Grade D
QuantHub Verdict
CAT has more upside to fair value (-39.4%). GS trades at a lower forward P/E (23.6x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric CAT GS
Current Price $940.12 $1,045.91
Fair Value Estimate $569.47 $575.25
Upside to Fair Value -39.4% -45.0%
Market Cap $433.1B $308.6B
Forward P/E 46.6x 23.6x
EV / EBITDA 29.7x 15.9x
Price / Sales 6.1x 3.1x
Price / FCF 37.8x -7.4x
Revenue Growth YoY +22.2% -35.0%
Gross Margin 32.5% 47.4%
Operating Margin 16.6% 17.8%
Return on Equity 47.5% 15.3%
Dividend Yield 0% 0%
FCF Yield 2.64%
Analyst Consensus Hold Hold
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…
GS — The Goldman Sachs Group, Inc.
The Goldman Sachs Group, Inc. operates as a leading global financial services firm specializing in investment banking, securities, investment management, and consumer banking. Despite its strong brand and competitive position in financial capital markets, the company currently faces significant headwinds as evidenced by a 35% decline in revenue and a 100% drop in earnings in the most recent quart…
Accumulation Zones
Metric CAT GS
Zone Low $427.10 $431.44
Zone High $484.05 $488.96
In Buy Zone? No No
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