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 2026-09-21.
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
VS
Lululemon Athletica Inc. · Consumer Cyclical
$98.06
+1.5% upside to fair value
Low Conviction
Grade C
QuantHub Verdict
LULU has more upside to fair value
(+1.5%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
LULU |
| Current Price |
$808.99 |
$98.06 |
| Fair Value Estimate |
$790.88 |
$99.50 |
| Upside to Fair Value |
-2.2%
|
+1.5%
|
| Market Cap |
$372.6B |
$11.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
4.6x
|
| Price / Sales |
5.0x
|
1.0x
|
| Price / FCF |
41.4x
|
8.2x
|
| Revenue Growth YoY |
+24.0%
|
-4.3%
|
| Gross Margin |
33.9%
|
56.1%
|
| Operating Margin |
17.5%
|
17.8%
|
| Return on Equity |
54.1%
|
29.7%
|
| Dividend Yield |
0.76% |
0% |
| FCF Yield |
2.41%
|
12.24%
|
| Analyst Consensus |
Buy
|
Sell
|
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%…
Lululemon Athletica designs and retails premium athletic apparel and accessories through company-owned stores and direct-to-consumer channels, with roughly 39,000 employees and a brand built on technical fabrics and community-led fitness positioning. The business still earns high returns on equity of 29.7% and generates $12.00 of free cash flow per share on $97.70 of revenue per share, with TTM g…
Accumulation Zones
| Metric |
CAT |
LULU |
| Zone Low |
$593.16 |
$74.62 |
| Zone High |
$672.25 |
$84.58 |
| In Buy Zone? |
No
|
No
|