CAT vs ORCL: Which Is the Better Buy?

Side-by-side comparison of Caterpillar Inc. and Oracle 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
Oracle Corporation · Technology
$184.31
+14.0% upside to fair value
Grade C High Quality
QuantHub Verdict
ORCL has more upside to fair value (+14.0%). ORCL trades at a lower forward P/E (31.0x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric CAT ORCL
Current Price $940.12 $184.31
Fair Value Estimate $569.47 $210.13
Upside to Fair Value -39.4% +14.0%
Market Cap $433.1B $530.1B
Forward P/E 46.6x 31.0x
EV / EBITDA 29.7x 20.4x
Price / Sales 6.1x 7.9x
Price / FCF 37.8x -22.4x
Revenue Growth YoY +22.2% +20.6%
Gross Margin 32.5% 65.8%
Operating Margin 16.6% 30.8%
Return on Equity 47.5% 50.4%
Dividend Yield 0% 0%
FCF Yield 2.64%
Analyst Consensus Hold Strong Buy
Investment Thesis
CAT — Caterpillar Inc.
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…
ORCL — Oracle Corporation
Oracle Corporation is a leading enterprise software and cloud infrastructure provider with a durable competitive moat driven by its extensive software portfolio, strong cloud growth, and stable leadership. The company reported $57.4 billion in revenue for fiscal 2025, growing 8% year-over-year, with cloud services and license support growing 12%. Oracle's cloud infrastructure (OCI) is a key growt…
Accumulation Zones
Metric CAT ORCL
Zone Low $427.10 $157.60
Zone High $484.05 $178.61
In Buy Zone? No No
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