CAT vs ISRG: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Intuitive Surgical, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-25.
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
VS
Intuitive Surgical, Inc. · Healthcare
$399.52
+22.4% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
ISRG has more upside to fair value
(+22.4%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
ISRG |
| Current Price |
$808.99 |
$399.52 |
| Fair Value Estimate |
$790.88 |
$488.97 |
| Upside to Fair Value |
-2.2%
|
+22.4%
|
| Market Cap |
$372.6B |
$141.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
30.7x
|
| Price / Sales |
5.0x
|
12.8x
|
| Price / FCF |
41.4x
|
44.0x
|
| Revenue Growth YoY |
+24.0%
|
+18.5%
|
| Gross Margin |
33.9%
|
66.7%
|
| Operating Margin |
17.5%
|
31.3%
|
| Return on Equity |
54.1%
|
17.8%
|
| Dividend Yield |
0.76% |
0% |
| FCF Yield |
2.41%
|
2.28%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Caterpillar is the world's premier manufacturer of heavy construction and mining equipment, diesel and natural gas power units, and industrial gas turbines, organized across Construction Industries, Resource Industries, Energy & Transportation, and Financial Products, with 118,000 employees and a century-old brand. Business quality is high: return on equity of 54.1%, TTM operating margin of 17.5%…
Intuitive Surgical develops, produces, and commercializes the da Vinci surgical system and the Ion endoluminal system, along with instruments, accessories, training, and digital solutions that drive a large installed-base and recurring-revenue model. Business quality is high: TTM gross margin of 66.7%, operating margin of 31.3%, net margin of 28.4%, ROE of 17.8%, and revenue growth of 18.5% with …
Accumulation Zones
| Metric |
CAT |
ISRG |
| Zone Low |
$593.16 |
$366.73 |
| Zone High |
$672.25 |
$415.62 |
| In Buy Zone? |
No
|
Yes
|