CAT vs RTX: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and RTX Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-06-20.
Caterpillar Inc. · Industrials
$985.82
-39.7% upside to fair value
Grade C
High Quality
VS
RTX Corporation · Industrials
$185.60
-25.2% upside to fair value
Grade D
QuantHub Verdict
RTX has more upside to fair value
(-25.2%).
RTX trades at a lower forward P/E
(34.3x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
RTX |
| Current Price |
$985.82 |
$185.60 |
| Fair Value Estimate |
$594.71 |
$138.81 |
| Upside to Fair Value |
-39.7%
|
-25.2%
|
| Market Cap |
$454.1B |
$249.9B |
| Forward P/E |
48.9x
|
34.3x
|
| EV / EBITDA |
31.0x
|
18.3x
|
| Price / Sales |
6.4x
|
2.8x
|
| Price / FCF |
39.7x
|
29.9x
|
| Revenue Growth YoY |
+22.2%
|
+8.7%
|
| Gross Margin |
32.5%
|
20.2%
|
| Operating Margin |
16.6%
|
10.9%
|
| Return on Equity |
47.5%
|
11.2%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.52%
|
3.34%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Caterpillar Inc. is a leading global manufacturer of construction, mining, and power generation equipment with a durable competitive moat supported by its #1 global market share in core construction and mining equipment segments, typically in the 20-30%+ range. The company benefits from a stable and experienced management team, strong capital allocation focused on share repurchases and dividends,…
RTX Corporation is a leading aerospace and defense company with a strong competitive moat driven by scale and an installed base in commercial aerospace via Pratt & Whitney and Collins Aerospace, and defense through Raytheon. The company benefits from a large multi-year backlog of approximately $270 billion supporting steady cash flow and mid-single-digit organic growth. Despite solid revenue grow…
Accumulation Zones
| Metric |
CAT |
RTX |
| Zone Low |
$446.03 |
$104.11 |
| Zone High |
$505.50 |
$117.99 |
| In Buy Zone? |
No
|
No
|