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 2026-06-20.
Caterpillar Inc. · Industrials
$985.82
-39.7% 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.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
PG |
| Current Price |
$985.82 |
$150.38 |
| Fair Value Estimate |
$594.71 |
$165.39 |
| Upside to Fair Value |
-39.7%
|
+10.0%
|
| Market Cap |
$454.1B |
$350.2B |
| Forward P/E |
48.9x
|
21.5x
|
| EV / EBITDA |
31.0x
|
15.1x
|
| Price / Sales |
6.4x
|
4.0x
|
| Price / FCF |
39.7x
|
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 |
2.52%
|
4.29%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Caterpillar Inc. is a leading global manufacturer of construction, mining, and power generation equipment with a durable competitive moat supported by its #1 global market share in core construction and mining equipment segments, typically in the 20-30%+ range. The company benefits from a stable and experienced management team, strong capital allocation focused on share repurchases and dividends,…
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 |
$446.03 |
$124.04 |
| Zone High |
$505.50 |
$140.58 |
| In Buy Zone? |
No
|
No
|