CAT vs LULU: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Lululemon Athletica Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-06-20.
Caterpillar Inc. · Industrials
$985.82
-39.7% upside to fair value
Grade C
High Quality
VS
Lululemon Athletica Inc. · Consumer Cyclical
$111.77
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
LULU has more upside to fair value
(+45.0%).
LULU trades at a lower forward P/E
(9.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
LULU |
| Current Price |
$985.82 |
$111.77 |
| Fair Value Estimate |
$594.71 |
$162.07 |
| Upside to Fair Value |
-39.7%
|
+45.0%
|
| Market Cap |
$454.1B |
$12.7B |
| Forward P/E |
48.9x
|
9.1x
|
| EV / EBITDA |
31.0x
|
5.1x
|
| Price / Sales |
6.4x
|
1.1x
|
| Price / FCF |
39.7x
|
9.9x
|
| Revenue Growth YoY |
+22.2%
|
+4.3%
|
| Gross Margin |
32.5%
|
55.7%
|
| Operating Margin |
16.6%
|
18.2%
|
| Return on Equity |
47.5%
|
31.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.52%
|
10.08%
|
| Analyst Consensus |
Buy
|
Hold
|
Investment Thesis
Caterpillar Inc. is a leading global manufacturer of construction, mining, and power generation equipment with a durable competitive moat supported by its #1 global market share in core construction and mining equipment segments, typically in the 20-30%+ range. The company benefits from a stable and experienced management team, strong capital allocation focused on share repurchases and dividends,…
Lululemon Athletica Inc. operates in the premium athletic apparel retail sector, leveraging a strong brand and a durable competitive moat driven by product innovation and global expansion, particularly in China. The company has demonstrated solid capital allocation with organic growth and buybacks, though it faces near-term earnings pressure with a 38% decline in quarterly earnings year-over-year…
Accumulation Zones
| Metric |
CAT |
LULU |
| Zone Low |
$446.03 |
$121.55 |
| Zone High |
$505.50 |
$137.76 |
| In Buy Zone? |
No
|
Yes
|