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 2026-04-11.
Caterpillar Inc. · Industrials
$792.65
-8.8% upside to fair value
Grade D
VS
Johnson & Johnson · Healthcare
$238.46
-11.8% upside to fair value
Med Conviction
Grade C+
QuantHub Verdict
CAT has more upside to fair value
(-8.8%).
JNJ trades at a lower forward P/E
(20.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
JNJ |
| Current Price |
$792.65 |
$238.46 |
| Fair Value Estimate |
$723.13 |
$210.28 |
| Upside to Fair Value |
-8.8%
|
-11.8%
|
| Market Cap |
$370.9B |
$574.7B |
| Forward P/E |
41.7x
|
20.2x
|
| EV / EBITDA |
27.2x
|
13.3x
|
| Price / Sales |
5.5x
|
6.2x
|
| Price / FCF |
36.1x
|
29.4x
|
| Revenue Growth YoY |
+8.5%
|
+6.1%
|
| Gross Margin |
32.3%
|
72.8%
|
| Operating Margin |
16.6%
|
27.2%
|
| Return on Equity |
45.1%
|
32.87%
|
| Dividend Yield |
0% |
2.18% |
| FCF Yield |
2.77%
|
3.4%
|
| Analyst Consensus |
Buy
|
Moderate Buy
|
Investment Thesis
Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, engines, and industrial machinery, with a strong global footprint and a record $67.6 billion in revenues for 2025. The company benefits from a durable competitive position supported by a broad product portfolio and a large installed base, but faces margin pressure from tariffs and cost inflation. Despite so…
Johnson & Johnson is a high-quality healthcare conglomerate focused exclusively on Innovative Medicine and MedTech following the Kenvue spin-off. The company delivered $94.2B in FY2025 revenue with 6% operational growth, generated $19.7B in free cash flow, and guided for $99.5-100.5B in 2026 operational sales (above consensus). However, at $238 the stock trades at a P/S of 6.15x, well above the 5…
Accumulation Zones
| Metric |
CAT |
JNJ |
| Zone Low |
$542.35 |
$157.71 |
| Zone High |
$614.66 |
$178.74 |
| In Buy Zone? |
No
|
No
|