CAT vs LLY: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Eli Lilly and 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
Eli Lilly and Company · Healthcare
$1,179.09
+31.7% upside to fair value
High Conviction
Grade A
High Quality
QuantHub Verdict
LLY has more upside to fair value
(+31.7%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
LLY |
| Current Price |
$940.12 |
$1,179.09 |
| Fair Value Estimate |
$569.47 |
$1,552.32 |
| Upside to Fair Value |
-39.4%
|
+31.7%
|
| Market Cap |
$433.1B |
$1,110.4B |
| Forward P/E |
46.6x
|
—
|
| EV / EBITDA |
29.7x
|
34.3x
|
| Price / Sales |
6.1x
|
14.6x
|
| Price / FCF |
37.8x
|
77.7x
|
| Revenue Growth YoY |
+22.2%
|
+55.5%
|
| Gross Margin |
32.5%
|
83.5%
|
| Operating Margin |
16.6%
|
45.9%
|
| Return on Equity |
47.5%
|
101.3%
|
| Dividend Yield |
0% |
0.55% |
| FCF Yield |
2.64%
|
1.29%
|
| 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…
Eli Lilly is a global biopharma company whose exceptionally profitable cardiometabolic franchises, led by Mounjaro and Zepbound, are driving a high-quality growth phase: revenue rose 55.5% year over year and earnings rose 168.0% year over year in the most recent quarter, while gross, operating, and net margins were 83.5%, 45.9%, and 35.0%, respectively. Business quality is high because tirzepatid…
Accumulation Zones
| Metric |
CAT |
LLY |
| Zone Low |
$427.10 |
$1,164.24 |
| Zone High |
$484.05 |
$1,319.47 |
| In Buy Zone? |
No
|
Yes
|