CAT vs HON: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Honeywell International 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
Honeywell International Inc. · Industrials
$213.17
-14.5% upside to fair value
Grade D
QuantHub Verdict
HON has more upside to fair value
(-14.5%).
HON trades at a lower forward P/E
(33.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
HON |
| Current Price |
$912.14 |
$213.17 |
| Fair Value Estimate |
$475.00 |
$182.35 |
| Upside to Fair Value |
-47.9%
|
-14.5%
|
| Market Cap |
$420.2B |
$135.1B |
| Forward P/E |
44.9x
|
33.0x
|
| EV / EBITDA |
30.0x
|
23.9x
|
| Price / Sales |
5.9x
|
3.7x
|
| Price / FCF |
36.7x
|
32.4x
|
| Revenue Growth YoY |
+22.2%
|
-6.9%
|
| Gross Margin |
32.5%
|
36.9%
|
| Operating Margin |
16.6%
|
14.9%
|
| Return on Equity |
47.5%
|
23.6%
|
| Dividend Yield |
1.5% |
0% |
| FCF Yield |
2.73%
|
3.09%
|
| 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…
Honeywell International Inc. is a diversified industrial conglomerate operating across Aerospace Technologies, Building Automation, Process Automation and Technology, and Safety and Productivity Solutions. The company benefits from a strong leadership team with deep internal experience and a history of strategic acquisitions that have expanded its portfolio into high-growth areas such as aerospac…
Accumulation Zones
| Metric |
CAT |
HON |
| Zone Low |
$356.00 |
$136.76 |
| Zone High |
$404.00 |
$155.00 |
| In Buy Zone? |
No
|
No
|