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 2026-09-26.
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
VS
NVIDIA Corporation · Technology
$225.07
+45.0% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
NVDA has more upside to fair value
(+45.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
NVDA |
| Current Price |
$808.99 |
$225.07 |
| Fair Value Estimate |
$790.88 |
$326.35 |
| Upside to Fair Value |
-2.2%
|
+45.0%
|
| Market Cap |
$372.6B |
$5,451.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
23.4x
|
| Price / Sales |
5.0x
|
18.0x
|
| Price / FCF |
41.4x
|
42.9x
|
| Revenue Growth YoY |
+24.0%
|
+105.9%
|
| Gross Margin |
33.9%
|
74.7%
|
| Operating Margin |
17.5%
|
65.2%
|
| Return on Equity |
54.1%
|
110.1%
|
| Dividend Yield |
0.76% |
0.23% |
| FCF Yield |
2.41%
|
2.33%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Caterpillar is the world's premier manufacturer of heavy construction and mining equipment, diesel and natural gas power units, and industrial gas turbines, organized across Construction Industries, Resource Industries, Energy & Transportation, and Financial Products, with 118,000 employees and a century-old brand. Business quality is high: return on equity of 54.1%, TTM operating margin of 17.5%…
NVIDIA designs the accelerated computing platforms at the center of the AI buildout, spanning data center GPUs, Mellanox networking, AI enterprise software, gaming GeForce GPUs, professional visualization, and automotive platforms, with 42,000 employees and a $5.45 trillion market capitalization. Business quality is exceptional on the fundamentals: TTM gross margin of 74.7%, TTM operating margin …
Accumulation Zones
| Metric |
CAT |
NVDA |
| Zone Low |
$593.16 |
$244.76 |
| Zone High |
$672.25 |
$277.40 |
| In Buy Zone? |
No
|
Yes
|