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 2026-07-08.
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C
High Quality
VS
NVIDIA Corporation · Technology
$210.69
+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
(32.1x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
NVDA |
| Current Price |
$940.12 |
$210.69 |
| Fair Value Estimate |
$569.47 |
$305.50 |
| Upside to Fair Value |
-39.4%
|
+45.0%
|
| Market Cap |
$433.1B |
$5,103.1B |
| Forward P/E |
46.6x
|
32.1x
|
| EV / EBITDA |
29.7x
|
26.5x
|
| Price / Sales |
6.1x
|
20.1x
|
| Price / FCF |
37.8x
|
42.9x
|
| 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 |
0% |
0% |
| FCF Yield |
2.64%
|
2.33%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
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…
NVIDIA Corporation is a leading technology company specializing in semiconductors, particularly GPUs and AI accelerators, with a dominant market position in AI training markets holding over 80% share. The company exhibits exceptional business quality with a founder-led management team boasting over 30 years of continuous leadership, very high profitability with gross margins above 74% and net mar…
Accumulation Zones
| Metric |
CAT |
NVDA |
| Zone Low |
$427.10 |
$229.12 |
| Zone High |
$484.05 |
$259.68 |
| In Buy Zone? |
No
|
Yes
|