CAT vs NKE: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and NIKE, Inc. — 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
NIKE, Inc. · Consumer Cyclical
$42.62
+45.5% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
NKE has more upside to fair value
(+45.5%).
NKE trades at a lower forward P/E
(27.9x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
NKE |
| Current Price |
$792.65 |
$42.62 |
| Fair Value Estimate |
$723.13 |
$62.00 |
| Upside to Fair Value |
-8.8%
|
+45.5%
|
| Market Cap |
$370.9B |
$63.0B |
| Forward P/E |
41.7x
|
27.9x
|
| EV / EBITDA |
27.2x
|
20.7x
|
| Price / Sales |
5.5x
|
1.4x
|
| Price / FCF |
36.1x
|
19.4x
|
| Revenue Growth YoY |
+8.5%
|
-9.8%
|
| Gross Margin |
32.3%
|
42.7%
|
| Operating Margin |
16.6%
|
8.0%
|
| Return on Equity |
45.1%
|
24.4%
|
| Dividend Yield |
0% |
3.8% |
| FCF Yield |
2.77%
|
5.2%
|
| Analyst Consensus |
Buy
|
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…
Nike is the world's largest athletic footwear and apparel company with $46.3B in FY2025 revenue, operating across 190+ countries with the Nike, Jordan, and Converse brands. The stock trades near its 9-year low at $42.62 after an 11% single-day crash following a Q3 FY2026 earnings report that showed 35% net income decline and weak Q4 guidance calling for a further 2-4% revenue decline. FY2025 reve…
Accumulation Zones
| Metric |
CAT |
NKE |
| Zone Low |
$542.35 |
$44.00 |
| Zone High |
$614.66 |
$50.00 |
| In Buy Zone? |
No
|
Yes
|