CAT vs PANW: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Palo Alto Networks, Inc. — 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
Palo Alto Networks, Inc. · Technology
$287.78
+2.9% upside to fair value
Grade B
High Quality
QuantHub Verdict
PANW has more upside to fair value
(+2.9%).
CAT trades at a lower forward P/E
(46.6x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
PANW |
| Current Price |
$940.12 |
$287.78 |
| Fair Value Estimate |
$569.47 |
$296.19 |
| Upside to Fair Value |
-39.4%
|
+2.9%
|
| Market Cap |
$433.1B |
$196.1B |
| Forward P/E |
46.6x
|
248.9x
|
| EV / EBITDA |
29.7x
|
85.9x
|
| Price / Sales |
6.1x
|
18.5x
|
| Price / FCF |
37.8x
|
45.7x
|
| Revenue Growth YoY |
+22.2%
|
+31.1%
|
| Gross Margin |
32.5%
|
71.9%
|
| Operating Margin |
16.6%
|
9.6%
|
| Return on Equity |
47.5%
|
6.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.64%
|
2.19%
|
| 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…
Palo Alto Networks is a leading cybersecurity company specializing in next-generation security platforms with a strong subscription and support revenue base comprising approximately 81% of total revenue. The company benefits from a wide and expanding competitive moat driven by its AI- and platform-driven cybersecurity solutions, led by a seasoned management team. Despite strong revenue growth of …
Accumulation Zones
| Metric |
CAT |
PANW |
| Zone Low |
$427.10 |
$222.14 |
| Zone High |
$484.05 |
$251.76 |
| In Buy Zone? |
No
|
No
|