CAT vs KO: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and The Coca-Cola Company — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-17.
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C
High Quality
VS
The Coca-Cola Company · Consumer Defensive
$84.92
-10.2% upside to fair value
Grade C
High Quality
QuantHub Verdict
KO has more upside to fair value
(-10.2%).
KO trades at a lower forward P/E
(26.6x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
KO |
| Current Price |
$940.12 |
$84.92 |
| Fair Value Estimate |
$569.47 |
$76.30 |
| Upside to Fair Value |
-39.4%
|
-10.2%
|
| Market Cap |
$433.1B |
$365.4B |
| Forward P/E |
46.6x
|
26.6x
|
| EV / EBITDA |
29.7x
|
20.7x
|
| Price / Sales |
6.1x
|
7.4x
|
| Price / FCF |
37.8x
|
29.1x
|
| Revenue Growth YoY |
+22.2%
|
+12.1%
|
| Gross Margin |
32.5%
|
61.7%
|
| Operating Margin |
16.6%
|
29.3%
|
| Return on Equity |
47.5%
|
43.6%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.64%
|
3.44%
|
| 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…
The Coca-Cola Company is a leading global beverage company specializing in non-alcoholic drinks with a durable competitive moat driven by its strong brand and extensive distribution network. The business quality is high, evidenced by a 43.6% return on equity, robust gross margin of 61.7%, and solid revenue and earnings growth of 12.1% and 17.8% respectively in the most recent quarter. Despite the…
Accumulation Zones
| Metric |
CAT |
KO |
| Zone Low |
$427.10 |
$57.22 |
| Zone High |
$484.05 |
$64.85 |
| In Buy Zone? |
No
|
No
|