CAT vs MA: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Mastercard Incorporated — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Caterpillar Inc. · Industrials
$792.65
-8.8% upside to fair value
Grade D
VS
Mastercard Incorporated · Financial Services
$498.66
+22.3% upside to fair value
High Conviction
Grade A-
QuantHub Verdict
MA has more upside to fair value
(+22.3%).
MA trades at a lower forward P/E
(25.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
MA |
| Current Price |
$792.65 |
$498.66 |
| Fair Value Estimate |
$723.13 |
$610.00 |
| Upside to Fair Value |
-8.8%
|
+22.3%
|
| Market Cap |
$370.9B |
$445.0B |
| Forward P/E |
41.7x
|
25.5x
|
| EV / EBITDA |
27.2x
|
22.4x
|
| Price / Sales |
5.5x
|
13.6x
|
| Price / FCF |
36.1x
|
26.0x
|
| Revenue Growth YoY |
+8.5%
|
+16.4%
|
| Gross Margin |
32.3%
|
83.4%
|
| Operating Margin |
16.6%
|
59.2%
|
| Return on Equity |
45.1%
|
198.4%
|
| Dividend Yield |
0% |
0.65% |
| FCF Yield |
2.77%
|
3.84%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, engines, and industrial machinery, with a strong global footprint and a record $67.6 billion in revenues for 2025. The company benefits from a durable competitive position supported by a broad product portfolio and a large installed base, but faces margin pressure from tariffs and cost inflation. Despite so…
Mastercard operates one of the world's two dominant payment networks, processing over $9 trillion in gross dollar volume annually across 220+ countries. The business generates 83% gross margins and 46% net margins with zero credit risk because Mastercard never lends money, only collecting tolls on every transaction. Value-Added Services (analytics, fraud prevention, cybersecurity) now comprise 41…
Accumulation Zones
| Metric |
CAT |
MA |
| Zone Low |
$542.35 |
$460.00 |
| Zone High |
$614.66 |
$515.00 |
| In Buy Zone? |
No
|
Yes
|