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 2026-05-13.
Caterpillar Inc. · Industrials
$912.14
-47.9% upside to fair value
Grade D
High Quality
VS
Johnson & Johnson · Healthcare
$230.69
+10.8% upside to fair value
Grade C
High Quality
QuantHub Verdict
JNJ has more upside to fair value
(+10.8%).
JNJ trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
JNJ |
| Current Price |
$912.14 |
$230.69 |
| Fair Value Estimate |
$475.00 |
$255.61 |
| Upside to Fair Value |
-47.9%
|
+10.8%
|
| Market Cap |
$420.2B |
$555.9B |
| Forward P/E |
44.9x
|
26.8x
|
| EV / EBITDA |
30.0x
|
18.5x
|
| Price / Sales |
5.9x
|
5.8x
|
| Price / FCF |
36.7x
|
28.2x
|
| Revenue Growth YoY |
+22.2%
|
+9.9%
|
| Gross Margin |
32.5%
|
69.1%
|
| Operating Margin |
16.6%
|
26.9%
|
| Return on Equity |
47.5%
|
26.5%
|
| Dividend Yield |
1.5% |
0% |
| FCF Yield |
2.73%
|
3.54%
|
| 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…
Johnson & Johnson is a leading healthcare company focused on pharmaceuticals and medical devices following its consumer health spin-off. The business quality is high due to its durable competitive moat, diversified portfolio, and strong management with deep institutional knowledge. Despite a 52.4% decline in earnings in the most recent quarter, revenue grew 9.9% year-over-year in the same period,…
Accumulation Zones
| Metric |
CAT |
JNJ |
| Zone Low |
$356.00 |
$191.71 |
| Zone High |
$404.00 |
$217.27 |
| In Buy Zone? |
No
|
No
|