CAT vs PLTR: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Palantir Technologies Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-16.
Caterpillar Inc. · Industrials
$792.65
-8.8% upside to fair value
Grade D
VS
Palantir Technologies Inc. · Technology
$142.76
-24.3% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
CAT has more upside to fair value
(-8.8%).
CAT trades at a lower forward P/E
(41.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
PLTR |
| Current Price |
$792.65 |
$142.76 |
| Fair Value Estimate |
$723.13 |
$108.00 |
| Upside to Fair Value |
-8.8%
|
-24.3%
|
| Market Cap |
$370.9B |
$327.1B |
| Forward P/E |
41.7x
|
209.7x
|
| EV / EBITDA |
27.2x
|
—
|
| Price / Sales |
5.5x
|
73.1x
|
| Price / FCF |
36.1x
|
155.7x
|
| Revenue Growth YoY |
+8.5%
|
+19.1%
|
| Gross Margin |
32.3%
|
82.4%
|
| Operating Margin |
16.6%
|
31.6%
|
| Return on Equity |
45.1%
|
25.7%
|
| Dividend Yield |
0% |
— |
| FCF Yield |
2.77%
|
0.6%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, engines, and industrial machinery, with a strong global footprint and a record $67.6 billion in revenues for 2025. The company benefits from a durable competitive position supported by a broad product portfolio and a large installed base, but faces margin pressure from tariffs and cost inflation. Despite so…
Palantir Technologies develops data analytics and AI software platforms like Gotham and Foundry for government and commercial clients. The business excels with high margins (gross 82.4%, net 36.3%), accelerating growth (Q4 FY2025 revenue up 70% YoY to $1.41B, 2026 guidance $7.19B implying 61% growth), and strong moats in defense and enterprise AI, but trades expensively at 73x P/S versus 5-year m…
Accumulation Zones
| Metric |
CAT |
PLTR |
| Zone Low |
$542.35 |
$81.00 |
| Zone High |
$614.66 |
$92.00 |
| In Buy Zone? |
No
|
No
|