CAT vs QCOM: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and QUALCOMM Incorporated — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-13.
Caterpillar Inc. · Industrials
$912.14
-47.9% upside to fair value
Grade D
High Quality
VS
QUALCOMM Incorporated · Technology
$134.47
+45.0% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
QCOM has more upside to fair value
(+45.0%).
QCOM trades at a lower forward P/E
(26.8x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
QCOM |
| Current Price |
$912.14 |
$134.47 |
| Fair Value Estimate |
$475.00 |
$194.98 |
| Upside to Fair Value |
-47.9%
|
+45.0%
|
| Market Cap |
$420.2B |
$143.6B |
| Forward P/E |
44.9x
|
26.8x
|
| EV / EBITDA |
30.0x
|
—
|
| Price / Sales |
5.9x
|
3.2x
|
| Price / FCF |
36.7x
|
11.1x
|
| Revenue Growth YoY |
+22.2%
|
+8.7%
|
| Gross Margin |
32.5%
|
55.1%
|
| Operating Margin |
16.6%
|
27.1%
|
| Return on Equity |
47.5%
|
21.6%
|
| Dividend Yield |
1.5% |
— |
| FCF Yield |
2.73%
|
9.0%
|
| Analyst Consensus |
Hold
|
Hold
|
Investment Thesis
Caterpillar is the world's leading manufacturer of construction and mining equipment, with diversified revenue across Construction Industries, Resource Industries, Energy & Transportation, and Cat Financial. Q1 2026 results reported April 30 showed revenue of $17.4 billion (+22.2% YoY) and EPS of $5.50 (+30.3% YoY), driven by powerful demand from data center build-outs (large engine and power gen…
Qualcomm Incorporated is a leading semiconductor company specializing in wireless chipsets and IP licensing, with dominant positions in 5G modems via QCT (87% of revenue) and steady QTL royalties. The business excels through a vast patent moat, diversification into automotive and IoT, and robust growth (revenue +13% YoY to $44B in FY2025), but faces risks from Apple modem shifts and China exposur…
Accumulation Zones
| Metric |
CAT |
QCOM |
| Zone Low |
$356.00 |
$146.23 |
| Zone High |
$404.00 |
$165.73 |
| In Buy Zone? |
No
|
Yes
|