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 2026-09-21.
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
VS
RTX Corporation · Industrials
$193.54
+33.0% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
RTX has more upside to fair value
(+33.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
RTX |
| Current Price |
$808.99 |
$193.54 |
| Fair Value Estimate |
$790.88 |
$257.36 |
| Upside to Fair Value |
-2.2%
|
+33.0%
|
| Market Cap |
$372.6B |
$260.9B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
18.1x
|
| Price / Sales |
5.0x
|
2.8x
|
| Price / FCF |
41.4x
|
21.7x
|
| Revenue Growth YoY |
+24.0%
|
+14.5%
|
| Gross Margin |
33.9%
|
20.3%
|
| Operating Margin |
17.5%
|
11.2%
|
| Return on Equity |
54.1%
|
11.8%
|
| Dividend Yield |
0.76% |
1.46% |
| FCF Yield |
2.41%
|
4.6%
|
| Analyst Consensus |
Buy
|
Buy
|
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%…
RTX Corporation is a $260.85 billion aerospace and defense conglomerate operating three segments — Collins Aerospace, Pratt & Whitney, and Raytheon — serving commercial aviation, military, and government customers worldwide with 180,000 employees. The business quality is high: it holds intangible-asset and switching-cost advantages rooted in long-cycle engine programs, proprietary defense electro…
Accumulation Zones
| Metric |
CAT |
RTX |
| Zone Low |
$593.16 |
$193.02 |
| Zone High |
$672.25 |
$218.76 |
| In Buy Zone? |
No
|
Yes
|