CAT vs MS: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Morgan Stanley — 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
Morgan Stanley · Financial Services
$218.37
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
MS has more upside to fair value
(+45.0%).
MS trades at a lower forward P/E
(23.6x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
MS |
| Current Price |
$940.12 |
$218.37 |
| Fair Value Estimate |
$569.47 |
$316.64 |
| Upside to Fair Value |
-39.4%
|
+45.0%
|
| Market Cap |
$433.1B |
$344.4B |
| Forward P/E |
46.6x
|
23.6x
|
| EV / EBITDA |
29.7x
|
9.8x
|
| Price / Sales |
6.1x
|
2.7x
|
| Price / FCF |
37.8x
|
-327.4x
|
| Revenue Growth YoY |
+22.2%
|
+22.4%
|
| Gross Margin |
32.5%
|
56.6%
|
| Operating Margin |
16.6%
|
28.4%
|
| Return on Equity |
47.5%
|
23.4%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.64%
|
—
|
| Analyst Consensus |
Hold
|
Hold
|
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…
Morgan Stanley is a leading global financial services firm specializing in capital markets, wealth management, and investment banking. The company demonstrates high business quality with a strong return on equity of 23.4% and robust revenue growth of 22.4% in the most recent quarter, alongside impressive earnings growth of 57.7% in the same period. Its gross margin of 56.6% and net margin of 20.2…
Accumulation Zones
| Metric |
CAT |
MS |
| Zone Low |
$427.10 |
$237.48 |
| Zone High |
$484.05 |
$269.14 |
| In Buy Zone? |
No
|
Yes
|