CAT vs PFE: Which Is the Better Buy?

Side-by-side comparison of Caterpillar Inc. and Pfizer Inc. β€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-05-13.
Caterpillar Inc. Β· Industrials
$912.14
-47.9% upside to fair value
Grade D High Quality
VS
Pfizer Inc. Β· Healthcare
$26.33
+28.6% upside to fair value
Grade B
QuantHub Verdict
PFE has more upside to fair value (+28.6%). PFE trades at a lower forward P/E (19.3x). These are model outputs β€” not personalized investment advice. See all research β†’
Valuation & Fundamentals
Metric CAT PFE
Current Price $912.14 $26.33
Fair Value Estimate $475.00 $33.85
Upside to Fair Value -47.9% +28.6%
Market Cap $420.2B $149.8B
Forward P/E 44.9x 19.3x
EV / EBITDA 30.0x 12.9x
Price / Sales 5.9x 2.4x
Price / FCF 36.7x 16.5x
Revenue Growth YoY +22.2% -1.2%
Gross Margin 32.5% 70.3%
Operating Margin 16.6% 24.7%
Return on Equity 47.5% 8.7%
Dividend Yield 1.5% 0%
FCF Yield 2.73% 6.06%
Analyst Consensus Hold Hold
Investment Thesis
CAT β€” Caterpillar Inc.
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…
PFE β€” Pfizer Inc.
Pfizer Inc. is a leading global pharmaceutical company specializing in drug manufacturing with a strong presence in vaccines, oncology, and primary care. The company benefits from a seasoned leadership team under CEO Albert Bourla, who has driven a strategic transformation focusing on science-driven innovation and portfolio optimization. Despite a high gross margin of 70.3% and solid operating ma…
Accumulation Zones
Metric CAT PFE
Zone Low $356.00 $25.39
Zone High $404.00 $28.77
In Buy Zone? No Yes
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