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 2026-05-21.
Caterpillar Inc. · Industrials
$912.14
-47.9% upside to fair value
Grade D
High Quality
VS
NVIDIA Corporation · Technology
$219.76
+45.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
NVDA has more upside to fair value
(+45.0%).
NVDA trades at a lower forward P/E
(33.4x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
NVDA |
| Current Price |
$912.14 |
$219.76 |
| Fair Value Estimate |
$475.00 |
$318.65 |
| Upside to Fair Value |
-47.9%
|
+45.0%
|
| Market Cap |
$420.2B |
$5,322.7B |
| Forward P/E |
44.9x
|
33.4x
|
| EV / EBITDA |
30.0x
|
27.6x
|
| Price / Sales |
5.9x
|
21.0x
|
| Price / FCF |
36.7x
|
44.7x
|
| Revenue Growth YoY |
+22.2%
|
+85.2%
|
| Gross Margin |
32.5%
|
74.1%
|
| Operating Margin |
16.6%
|
64.0%
|
| Return on Equity |
47.5%
|
111.7%
|
| Dividend Yield |
1.5% |
0% |
| FCF Yield |
2.73%
|
2.24%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
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…
NVIDIA Corporation is a leading technology company specializing in semiconductors, primarily known for its GPUs and AI accelerators that power gaming, data center, and professional visualization markets. The company benefits from a durable competitive moat driven by its founder-led management, strong insider alignment, and dominant market share in AI data center chips. NVIDIA's business quality i…
Accumulation Zones
| Metric |
CAT |
NVDA |
| Zone Low |
$356.00 |
$238.99 |
| Zone High |
$404.00 |
$270.85 |
| In Buy Zone? |
No
|
Yes
|