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 2026-07-08.
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C
High Quality
VS
QUALCOMM Incorporated · Technology
$226.11
-10.7% upside to fair value
Grade D
High Quality
QuantHub Verdict
QCOM has more upside to fair value
(-10.7%).
QCOM trades at a lower forward P/E
(24.3x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
QCOM |
| Current Price |
$940.12 |
$226.11 |
| Fair Value Estimate |
$569.47 |
$201.84 |
| Upside to Fair Value |
-39.4%
|
-10.7%
|
| Market Cap |
$433.1B |
$238.3B |
| Forward P/E |
46.6x
|
24.3x
|
| EV / EBITDA |
29.7x
|
17.5x
|
| Price / Sales |
6.1x
|
5.4x
|
| Price / FCF |
37.8x
|
19.1x
|
| Revenue Growth YoY |
+22.2%
|
-3.5%
|
| Gross Margin |
32.5%
|
54.8%
|
| Operating Margin |
16.6%
|
25.5%
|
| Return on Equity |
47.5%
|
40.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.64%
|
5.25%
|
| Analyst Consensus |
Hold
|
Hold
|
Investment Thesis
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…
Qualcomm Incorporated is a leading semiconductor and telecommunications equipment company specializing in cellular and RF technologies, with a strong competitive moat driven by its intellectual property and scale in premium Android and 5G modems. The company benefits from a long-tenured management team and a diversified business model expanding into automotive, IoT, and computing sectors. Despite…
Accumulation Zones
| Metric |
CAT |
QCOM |
| Zone Low |
$427.10 |
$151.38 |
| Zone High |
$484.05 |
$171.56 |
| In Buy Zone? |
No
|
No
|