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 2026-07-16.
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C
High Quality
VS
Intuitive Surgical, Inc. · Healthcare
$388.97
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
ISRG has more upside to fair value
(+45.0%).
ISRG trades at a lower forward P/E
(46.5x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
ISRG |
| Current Price |
$940.12 |
$388.97 |
| Fair Value Estimate |
$569.47 |
$564.01 |
| Upside to Fair Value |
-39.4%
|
+45.0%
|
| Market Cap |
$433.1B |
$137.8B |
| Forward P/E |
46.6x
|
46.5x
|
| EV / EBITDA |
29.7x
|
31.4x
|
| Price / Sales |
6.1x
|
13.0x
|
| Price / FCF |
37.8x
|
48.6x
|
| Revenue Growth YoY |
+22.2%
|
+23.0%
|
| Gross Margin |
32.5%
|
66.3%
|
| Operating Margin |
16.6%
|
30.5%
|
| Return on Equity |
47.5%
|
17.0%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.64%
|
2.06%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
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…
Intuitive Surgical, Inc. operates in the healthcare sector, specializing in medical devices with a strong focus on robotic-assisted surgery systems. The company demonstrates high business quality with a durable competitive moat supported by a 17.0% return on equity, robust gross margin of 66.3%, and solid operating margin of 30.5%. Revenue and earnings growth in the most recent quarter were impre…
Accumulation Zones
| Metric |
CAT |
ISRG |
| Zone Low |
$427.10 |
$423.01 |
| Zone High |
$484.05 |
$479.41 |
| In Buy Zone? |
No
|
Yes
|