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 2026-09-21.
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
VS
Thermo Fisher Scientific Inc. · Healthcare
$658.32
+31.1% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
TMO has more upside to fair value
(+31.1%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
TMO |
| Current Price |
$808.99 |
$658.32 |
| Fair Value Estimate |
$790.88 |
$863.34 |
| Upside to Fair Value |
-2.2%
|
+31.1%
|
| Market Cap |
$372.6B |
$244.7B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
25.9x
|
| Price / Sales |
5.0x
|
5.3x
|
| Price / FCF |
41.4x
|
33.4x
|
| Revenue Growth YoY |
+24.0%
|
+10.5%
|
| Gross Margin |
33.9%
|
40.4%
|
| Operating Margin |
17.5%
|
17.7%
|
| Return on Equity |
54.1%
|
13.4%
|
| Dividend Yield |
0.76% |
0.28% |
| FCF Yield |
2.41%
|
3.0%
|
| Analyst Consensus |
Buy
|
Strong 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%…
Thermo Fisher Scientific is a global life-sciences and laboratory-services platform spanning Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Biopharma Services, with recognized brands including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Patheon, and PPD, serving pharmaceutical, biotech, clinical, academic, and governme…
Accumulation Zones
| Metric |
CAT |
TMO |
| Zone Low |
$593.16 |
$647.50 |
| Zone High |
$672.25 |
$733.84 |
| In Buy Zone? |
No
|
Yes
|