CAT vs NVDA: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and NVIDIA Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-10.
Caterpillar Inc. · Industrials
$792.65
-8.8% upside to fair value
Grade D
VS
NVIDIA Corporation · Technology
$182.08
+59.3% upside to fair value
High Conviction
Grade A-
QuantHub Verdict
NVDA has more upside to fair value
(+59.3%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
NVDA |
| Current Price |
$792.65 |
$182.08 |
| Fair Value Estimate |
$723.13 |
$290.00 |
| Upside to Fair Value |
-8.8%
|
+59.3%
|
| Market Cap |
$370.9B |
$4,425.5B |
| Forward P/E |
41.7x
|
—
|
| EV / EBITDA |
27.2x
|
31.4x
|
| Price / Sales |
5.5x
|
21.0x
|
| Price / FCF |
36.1x
|
46.9x
|
| Revenue Growth YoY |
+8.5%
|
+65.5%
|
| Gross Margin |
32.3%
|
71.1%
|
| Operating Margin |
16.6%
|
60.4%
|
| Return on Equity |
45.1%
|
76.3%
|
| Dividend Yield |
0% |
0.02% |
| FCF Yield |
2.77%
|
2.13%
|
| 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…
NVIDIA is the foundational infrastructure layer of the AI era. Data Center revenue reached $193.7B in FY2026, up 66% YoY, powered by insatiable demand for Blackwell B200 GPUs across hyperscalers and sovereign AI programs. The company generates $96.7B in annual free cash flow with 71% gross margins and 56% net margins, making it the most profitable semiconductor business in history. At P/E 37.7x v…
Accumulation Zones
| Metric |
CAT |
NVDA |
| Zone Low |
$542.35 |
$218.00 |
| Zone High |
$614.66 |
$250.00 |
| In Buy Zone? |
No
|
Yes
|