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 2026-04-22.
Caterpillar Inc. · Industrials
$794.65
+30.6% upside to fair value
Grade C
High Quality
VS
Morgan Stanley · Financial Services
$189.30
-30.5% upside to fair value
Grade C
High Quality
QuantHub Verdict
CAT has more upside to fair value
(+30.6%).
MS trades at a lower forward P/E
(16.4x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
MS |
| Current Price |
$794.65 |
$189.30 |
| Fair Value Estimate |
$1,037.56 |
$131.49 |
| Upside to Fair Value |
+30.6%
|
-30.5%
|
| Market Cap |
$371.9B |
$300.6B |
| Forward P/E |
41.8x
|
16.4x
|
| EV / EBITDA |
27.3x
|
24.4x
|
| Price / Sales |
5.5x
|
2.5x
|
| Price / FCF |
36.2x
|
-16.8x
|
| Revenue Growth YoY |
+18.0%
|
+18.8%
|
| Gross Margin |
32.3%
|
58.0%
|
| Operating Margin |
16.6%
|
19.5%
|
| Return on Equity |
45.1%
|
16.7%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.76%
|
—
|
| Analyst Consensus |
Buy
|
Hold
|
Investment Thesis
Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, with a diversified revenue base across Energy and Transportation, Construction Industries, Resource Industries, and Financial Products. The company benefits from a durable competitive moat driven by its extensive global operations, strong brand, and operational excellence. Despite strong revenue growth of 1…
Morgan Stanley is a leading global financial services firm operating in Institutional Securities, Wealth Management, and Investment Management. The company benefits from a durable competitive moat supported by its systemically important status, diversified revenue streams, and strong management with a 36-year veteran CEO. Despite solid fundamentals including 14.2% revenue growth in 2025 and 16.7%…
Accumulation Zones
| Metric |
CAT |
MS |
| Zone Low |
$778.17 |
$98.62 |
| Zone High |
$881.93 |
$111.77 |
| In Buy Zone? |
Yes
|
No
|