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 2026-09-25.
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
VS
Johnson & Johnson · Healthcare
$270.68
+5.7% upside to fair value
Med Conviction
Grade C
High Quality
QuantHub Verdict
JNJ has more upside to fair value
(+5.7%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
JNJ |
| Current Price |
$808.99 |
$270.68 |
| Fair Value Estimate |
$790.88 |
$286.05 |
| Upside to Fair Value |
-2.2%
|
+5.7%
|
| Market Cap |
$372.6B |
$652.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
20.2x
|
| Price / Sales |
5.0x
|
6.7x
|
| Price / FCF |
41.4x
|
35.3x
|
| Revenue Growth YoY |
+24.0%
|
+6.6%
|
| Gross Margin |
33.9%
|
67.9%
|
| Operating Margin |
17.5%
|
26.8%
|
| Return on Equity |
54.1%
|
25.7%
|
| Dividend Yield |
0.76% |
1.95% |
| FCF Yield |
2.41%
|
2.83%
|
| Analyst Consensus |
Buy
|
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%…
Johnson & Johnson is a 141,700-employee healthcare holding company operating two segments, Innovative Medicine (immunology, oncology, neuroscience, infectious disease, cardiovascular and metabolism, pulmonary hypertension) and MedTech (interventional solutions, orthopaedics, surgery, vision), founded in 1887 and headquartered in New Brunswick, New Jersey. Business quality is high on fundamentals:…
Accumulation Zones
| Metric |
CAT |
JNJ |
| Zone Low |
$593.16 |
$214.54 |
| Zone High |
$672.25 |
$243.14 |
| In Buy Zone? |
No
|
No
|