CAT vs JNJ: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Johnson & Johnson — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-15.
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C
High Quality
VS
Johnson & Johnson · Healthcare
$253.85
-21.7% upside to fair value
Grade D
High Quality
QuantHub Verdict
JNJ has more upside to fair value
(-21.7%).
JNJ trades at a lower forward P/E
(29.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
JNJ |
| Current Price |
$940.12 |
$253.85 |
| Fair Value Estimate |
$569.47 |
$198.76 |
| Upside to Fair Value |
-39.4%
|
-21.7%
|
| Market Cap |
$433.1B |
$611.1B |
| Forward P/E |
46.6x
|
29.3x
|
| EV / EBITDA |
29.7x
|
19.2x
|
| Price / Sales |
6.1x
|
6.3x
|
| Price / FCF |
37.8x
|
34.3x
|
| Revenue Growth YoY |
+22.2%
|
+9.9%
|
| Gross Margin |
32.5%
|
69.1%
|
| Operating Margin |
16.6%
|
26.9%
|
| Return on Equity |
47.5%
|
26.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.64%
|
2.91%
|
| Analyst Consensus |
Hold
|
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…
Johnson & Johnson is a leading healthcare conglomerate operating primarily in the drug manufacturing sector, known for its durable competitive moat supported by strong brand recognition and intangible assets. The company exhibits high business quality with a 26.3% return on equity and robust gross and net margins of 69.1% and 21.8%, respectively. However, earnings have faced significant pressure,…
Accumulation Zones
| Metric |
CAT |
JNJ |
| Zone Low |
$427.10 |
$149.07 |
| Zone High |
$484.05 |
$168.95 |
| In Buy Zone? |
No
|
No
|