CAT vs TSLA: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Tesla, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-05-13.
Caterpillar Inc. · Industrials
$912.14
-47.9% upside to fair value
Grade D
High Quality
VS
Tesla, Inc. · Consumer Cyclical
$387.51
-45.0% upside to fair value
Grade D
QuantHub Verdict
TSLA has more upside to fair value
(-45.0%).
CAT trades at a lower forward P/E
(44.9x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
TSLA |
| Current Price |
$912.14 |
$387.51 |
| Fair Value Estimate |
$475.00 |
$213.13 |
| Upside to Fair Value |
-47.9%
|
-45.0%
|
| Market Cap |
$420.2B |
$1,454.1B |
| Forward P/E |
44.9x
|
330.0x
|
| EV / EBITDA |
30.0x
|
122.9x
|
| Price / Sales |
5.9x
|
15.3x
|
| Price / FCF |
36.7x
|
233.8x
|
| Revenue Growth YoY |
+22.2%
|
-3.1%
|
| Gross Margin |
32.5%
|
18.0%
|
| Operating Margin |
16.6%
|
4.6%
|
| Return on Equity |
47.5%
|
4.8%
|
| Dividend Yield |
1.5% |
0% |
| FCF Yield |
2.73%
|
0.43%
|
| Analyst Consensus |
Hold
|
Hold
|
Investment Thesis
Caterpillar is the world's leading manufacturer of construction and mining equipment, with diversified revenue across Construction Industries, Resource Industries, Energy & Transportation, and Cat Financial. Q1 2026 results reported April 30 showed revenue of $17.4 billion (+22.2% YoY) and EPS of $5.50 (+30.3% YoY), driven by powerful demand from data center build-outs (large engine and power gen…
Tesla, Inc. is a leading global manufacturer of electric vehicles, energy storage, and solar products, led by CEO Elon Musk since 2008. The company has a mixed business quality profile with a strong brand and innovation leadership but faces significant challenges including declining automotive revenue, which fell nearly 10% year-over-year in 2025, and a 3.1% revenue decline in the most recent qua…
Accumulation Zones
| Metric |
CAT |
TSLA |
| Zone Low |
$356.00 |
$159.85 |
| Zone High |
$404.00 |
$181.16 |
| In Buy Zone? |
No
|
No
|