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 2026-09-21.
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
VS
The Procter & Gamble Company · Consumer Defensive
$147.04
+14.4% upside to fair value
Med Conviction
Grade B+
High Quality
QuantHub Verdict
PG has more upside to fair value
(+14.4%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
PG |
| Current Price |
$808.99 |
$147.04 |
| Fair Value Estimate |
$790.88 |
$168.19 |
| Upside to Fair Value |
-2.2%
|
+14.4%
|
| Market Cap |
$372.6B |
$349.5B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
17.6x
|
| Price / Sales |
5.0x
|
4.0x
|
| Price / FCF |
41.4x
|
22.4x
|
| Revenue Growth YoY |
+24.0%
|
+1.5%
|
| Gross Margin |
33.9%
|
50.2%
|
| Operating Margin |
17.5%
|
22.7%
|
| Return on Equity |
54.1%
|
29.8%
|
| Dividend Yield |
0.76% |
2.92% |
| FCF Yield |
2.41%
|
4.47%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
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%…
Procter & Gamble is a global consumer-staples leader selling daily-use products across beauty, grooming, health care, fabric and home care, and baby, feminine and family care in about 180 countries. Business quality is high because its brands, consumer insight, R&D, marketing scale and global distribution underpin leading category positions, including over 60% in blades and razors and over 35% in…
Accumulation Zones
| Metric |
CAT |
PG |
| Zone Low |
$593.16 |
$126.14 |
| Zone High |
$672.25 |
$142.96 |
| In Buy Zone? |
No
|
No
|