CAT vs HD: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and The Home Depot, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-20.
Caterpillar Inc. · Industrials
$912.14
-47.9% upside to fair value
Grade D
High Quality
VS
The Home Depot, Inc. · Consumer Cyclical
$302.44
+22.0% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
HD has more upside to fair value
(+22.0%).
HD trades at a lower forward P/E
(20.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
HD |
| Current Price |
$912.14 |
$302.44 |
| Fair Value Estimate |
$475.00 |
$369.00 |
| Upside to Fair Value |
-47.9%
|
+22.0%
|
| Market Cap |
$420.2B |
$301.2B |
| Forward P/E |
44.9x
|
20.5x
|
| EV / EBITDA |
30.0x
|
16.5x
|
| Price / Sales |
5.9x
|
2.0x
|
| Price / FCF |
36.7x
|
26.6x
|
| Revenue Growth YoY |
+22.2%
|
+4.8%
|
| Gross Margin |
32.5%
|
33.3%
|
| Operating Margin |
16.6%
|
12.7%
|
| Return on Equity |
47.5%
|
110.5%
|
| Dividend Yield |
1.5% |
2.72% |
| FCF Yield |
2.73%
|
3.75%
|
| Analyst Consensus |
Hold
|
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…
Home Depot remains the world's largest home improvement retailer with 2,350+ stores, dominant 52% market share, and an expanding Pro contractor segment bolstered by the SRS Distribution acquisition. Q1 FY2026 results released May 19 beat both the top and bottom line, with revenue of $41.77B up 4.8% year over year and adjusted EPS of $3.43 versus the $3.41 consensus. Comp sales grew only 0.6% howe…
Accumulation Zones
| Metric |
CAT |
HD |
| Zone Low |
$356.00 |
$276.75 |
| Zone High |
$404.00 |
$313.65 |
| In Buy Zone? |
No
|
Yes
|