CAT vs SBUX: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Starbucks Corporation — 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
Starbucks Corporation · Consumer Cyclical
$100.65
-6.1% upside to fair value
Grade D
QuantHub Verdict
SBUX has more upside to fair value
(-6.1%).
CAT trades at a lower forward P/E
(46.6x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
SBUX |
| Current Price |
$940.12 |
$100.65 |
| Fair Value Estimate |
$569.47 |
$94.50 |
| Upside to Fair Value |
-39.4%
|
-6.1%
|
| Market Cap |
$433.1B |
$114.7B |
| Forward P/E |
46.6x
|
76.7x
|
| EV / EBITDA |
29.7x
|
25.6x
|
| Price / Sales |
6.1x
|
3.0x
|
| Price / FCF |
37.8x
|
42.1x
|
| Revenue Growth YoY |
+22.2%
|
+8.8%
|
| Gross Margin |
32.5%
|
20.4%
|
| Operating Margin |
16.6%
|
9.3%
|
| Return on Equity |
47.5%
|
-18.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.64%
|
2.38%
|
| 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…
Starbucks Corporation operates a global coffeehouse chain with a strong brand and a leading digital/mobile platform, serving approximately 90 million customers weekly through over 28,000 stores in 77 countries. The company benefits from a durable competitive moat based on its extensive store footprint, brand recognition, and digital engagement rather than proprietary products. Despite solid reven…
Accumulation Zones
| Metric |
CAT |
SBUX |
| Zone Low |
$427.10 |
$70.88 |
| Zone High |
$484.05 |
$80.33 |
| In Buy Zone? |
No
|
No
|