CAT vs MELI: Which Is the Better Buy?

Side-by-side comparison of Caterpillar Inc. and MercadoLibre, Inc. β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-05-13.
Caterpillar Inc. Β· Industrials
$912.14
-47.9% upside to fair value
Grade D High Quality
VS
MercadoLibre, Inc. Β· Consumer Cyclical
$1,632.52
+45.0% upside to fair value
Grade B High Quality
QuantHub Verdict
MELI has more upside to fair value (+45.0%). MELI trades at a lower forward P/E (43.1x). These are model outputs β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric CAT MELI
Current Price $912.14 $1,632.52
Fair Value Estimate $475.00 $2,367.15
Upside to Fair Value -47.9% +45.0%
Market Cap $420.2B $82.8B
Forward P/E 44.9x 43.1x
EV / EBITDA 30.0x 22.5x
Price / Sales 5.9x 2.7x
Price / FCF 36.7x 7.2x
Revenue Growth YoY +22.2% +30.0%
Gross Margin 32.5% 45.5%
Operating Margin 16.6% 9.9%
Return on Equity 47.5% 29.6%
Dividend Yield 1.5% 0%
FCF Yield 2.73% 13.89%
Analyst Consensus Hold Strong Buy
Investment Thesis
CAT β€” Caterpillar Inc.
Caterpillar is the world's leading manufacturer of construction and mining equipment, with diversified revenue across Construction Industries, Resource Industries, Energy & Transportation, and Cat Financial. Q1 2026 results reported April 30 showed revenue of $17.4 billion (+22.2% YoY) and EPS of $5.50 (+30.3% YoY), driven by powerful demand from data center build-outs (large engine and power gen…
MELI β€” MercadoLibre, Inc.
MercadoLibre, Inc. operates a leading e-commerce and fintech platform in Latin America, combining a dominant commerce marketplace with a rapidly growing fintech segment. The company benefits from a durable competitive moat driven by network effects, strong brand recognition, and a comprehensive logistics infrastructure. Despite a recent earnings growth decline of 15.6% in the most recent quarter,…
Accumulation Zones
Metric CAT MELI
Zone Low $356.00 $1,775.36
Zone High $404.00 $2,012.08
In Buy Zone? No Yes
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