CAT vs PG: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and The Procter & Gamble Company — 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
The Procter & Gamble Company · Consumer Defensive
$150.38
+10.0% upside to fair value
Grade B
High Quality
QuantHub Verdict
PG has more upside to fair value
(+10.0%).
PG trades at a lower forward P/E
(21.5x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
PG |
| Current Price |
$940.12 |
$150.38 |
| Fair Value Estimate |
$569.47 |
$165.39 |
| Upside to Fair Value |
-39.4%
|
+10.0%
|
| Market Cap |
$433.1B |
$350.2B |
| Forward P/E |
46.6x
|
21.5x
|
| EV / EBITDA |
29.7x
|
15.1x
|
| Price / Sales |
6.1x
|
4.0x
|
| Price / FCF |
37.8x
|
23.3x
|
| Revenue Growth YoY |
+22.2%
|
+7.4%
|
| Gross Margin |
32.5%
|
50.3%
|
| Operating Margin |
16.6%
|
23.2%
|
| Return on Equity |
47.5%
|
31.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.64%
|
4.29%
|
| Analyst Consensus |
Hold
|
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…
The Procter & Gamble Company is a leading global consumer defensive company specializing in household and personal products with a strong portfolio across fabric care, baby and family care, beauty, health care, and grooming. The business quality is high, supported by a durable competitive moat from strong brands, consistent earnings growth, and prudent capital allocation emphasizing dividends and…
Accumulation Zones
| Metric |
CAT |
PG |
| Zone Low |
$427.10 |
$124.04 |
| Zone High |
$484.05 |
$140.58 |
| In Buy Zone? |
No
|
No
|