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 2026-09-26.
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
VS
QUALCOMM Incorporated · Technology
$201.97
-21.1% upside to fair value
Med Conviction
Grade D
High Quality
QuantHub Verdict
CAT has more upside to fair value
(-2.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
QCOM |
| Current Price |
$808.99 |
$201.97 |
| Fair Value Estimate |
$790.88 |
$159.42 |
| Upside to Fair Value |
-2.2%
|
-21.1%
|
| Market Cap |
$372.6B |
$212.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
16.5x
|
| Price / Sales |
5.0x
|
4.8x
|
| Price / FCF |
41.4x
|
20.5x
|
| Revenue Growth YoY |
+24.0%
|
-4.0%
|
| Gross Margin |
33.9%
|
54.2%
|
| Operating Margin |
17.5%
|
23.2%
|
| Return on Equity |
54.1%
|
37.3%
|
| Dividend Yield |
0.76% |
1.79% |
| FCF Yield |
2.41%
|
4.88%
|
| Analyst Consensus |
Buy
|
Hold
|
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%…
Qualcomm develops foundational wireless technologies and monetizes them through two main engines: QCT, which supplies Snapdragon application processors and modems, and QTL, which licenses a standards-essential patent portfolio covering CDMA2000, WCDMA, LTE and 5G. The licensing arm and the company's entrenched position in premium Android handsets give it a genuinely high-quality business, evidenc…
Accumulation Zones
| Metric |
CAT |
QCOM |
| Zone Low |
$593.16 |
$119.56 |
| Zone High |
$672.25 |
$135.51 |
| In Buy Zone? |
No
|
No
|