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 2026-07-08.
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C High Quality
VS
Palantir Technologies Inc. · Technology
$128.47
-41.4% upside to fair value
Grade C High Quality
QuantHub Verdict
CAT has more upside to fair value (-39.4%). CAT trades at a lower forward P/E (46.6x). These are model outputs — not personalized investment advice. See all research →
Valuation & Fundamentals
Metric CAT PLTR
Current Price $940.12 $128.47
Fair Value Estimate $569.47 $75.23
Upside to Fair Value -39.4% -41.4%
Market Cap $433.1B $295.0B
Forward P/E 46.6x 133.8x
EV / EBITDA 29.7x 124.7x
Price / Sales 6.1x 56.5x
Price / FCF 37.8x 109.7x
Revenue Growth YoY +22.2% +84.7%
Gross Margin 32.5% 84.1%
Operating Margin 16.6% 38.1%
Return on Equity 47.5% 32.2%
Dividend Yield 0% 0%
FCF Yield 2.64% 0.91%
Analyst Consensus Hold Buy
Investment Thesis
CAT — Caterpillar Inc.
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…
PLTR — Palantir Technologies Inc.
Palantir Technologies Inc. is a software infrastructure company specializing in data analytics platforms primarily serving government and commercial clients. The company benefits from a durable competitive moat in government and select commercial verticals, driven by long-tenured founder leadership and high insider ownership. Palantir exhibits very strong recent growth with revenue up approximate…
Accumulation Zones
Metric CAT PLTR
Zone Low $427.10 $56.42
Zone High $484.05 $63.95
In Buy Zone? No No
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