CAT vs PFE: Which Is the Better Buy?

Side-by-side comparison of Caterpillar Inc. and Pfizer Inc. โ€” fair value, conviction, valuation metrics, and QuantHub research signals. Updated 2026-09-21.
Caterpillar Inc. ยท Industrials
$808.99
-2.2% upside to fair value
Med Conviction Grade C High Quality
VS
Pfizer Inc. ยท Healthcare
$27.64
+12.0% upside to fair value
Med Conviction Grade B
QuantHub Verdict
PFE has more upside to fair value (+12.0%). These are model outputs โ€” not personalized investment advice. See all research โ†’
Valuation & Fundamentals
Metric CAT PFE
Current Price $808.99 $27.64
Fair Value Estimate $790.88 $30.94
Upside to Fair Value -2.2% +12.0%
Market Cap $372.6B $157.5B
Forward P/E โ€” โ€”
EV / EBITDA 23.6x 17.4x
Price / Sales 5.0x 2.5x
Price / FCF 41.4x 14.3x
Revenue Growth YoY +24.0% +2.6%
Gross Margin 33.9% 71.3%
Operating Margin 17.5% 25.1%
Return on Equity 54.1% 4.9%
Dividend Yield 0.76% 6.22%
FCF Yield 2.41% 6.97%
Analyst Consensus Buy Hold
Investment Thesis
CAT โ€” Caterpillar Inc.
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%โ€ฆ
PFE โ€” Pfizer Inc.
Pfizer is a global biopharmaceutical leader with a portfolio spanning cardiovascular, oncology, vaccines, immunology, and rare disease, anchored by Eliquis, the Prevnar family, Vyndaqel, Ibrance, Xtandi, Comirnaty, and Paxlovid, and supported by roughly 75,000 employees and a contract manufacturing division. Business quality is medium rather than high: TTM gross margin of 71.3% and TTM operating โ€ฆ
Accumulation Zones
Metric CAT PFE
Zone Low $593.16 $23.21
Zone High $672.25 $26.30
In Buy Zone? No No
โ† CAT Research    PFE Research โ†’    All Research