CAT vs TMO: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Thermo Fisher Scientific Inc. — 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
Thermo Fisher Scientific Inc. · Healthcare
$464.61
+7.2% upside to fair value
Grade A
High Quality
QuantHub Verdict
TMO has more upside to fair value
(+7.2%).
TMO trades at a lower forward P/E
(25.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
TMO |
| Current Price |
$985.82 |
$464.61 |
| Fair Value Estimate |
$594.71 |
$498.27 |
| Upside to Fair Value |
-39.7%
|
+7.2%
|
| Market Cap |
$454.1B |
$172.7B |
| Forward P/E |
48.9x
|
25.2x
|
| EV / EBITDA |
31.0x
|
19.1x
|
| Price / Sales |
6.4x
|
3.8x
|
| Price / FCF |
39.7x
|
25.6x
|
| Revenue Growth YoY |
+22.2%
|
+6.2%
|
| Gross Margin |
32.5%
|
39.4%
|
| Operating Margin |
16.6%
|
17.8%
|
| Return on Equity |
47.5%
|
13.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.52%
|
3.91%
|
| Analyst Consensus |
Buy
|
Strong 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,…
Thermo Fisher Scientific is a leading healthcare company specializing in life science tools, diagnostics, and contract research and manufacturing services. It operates with a broad, multi-layered moat driven by scale, integration, and a long-tenured management team. The company exhibits solid fundamentals with a 13.3% ROE, 6.2% revenue growth, and 9.6% earnings growth in the most recent quarter. …
Accumulation Zones
| Metric |
CAT |
TMO |
| Zone Low |
$446.03 |
$373.70 |
| Zone High |
$505.50 |
$423.53 |
| In Buy Zone? |
No
|
No
|