CAT vs UNH: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and UnitedHealth Group Incorporated — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Caterpillar Inc. · Industrials
$792.65
-8.8% upside to fair value
Grade D
VS
UnitedHealth Group Incorporated · Healthcare
$304.33
+41.3% upside to fair value
Med Conviction
Grade B+
QuantHub Verdict
UNH has more upside to fair value
(+41.3%).
UNH trades at a lower forward P/E
(15.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
UNH |
| Current Price |
$792.65 |
$304.33 |
| Fair Value Estimate |
$723.13 |
$430.00 |
| Upside to Fair Value |
-8.8%
|
+41.3%
|
| Market Cap |
$370.9B |
$276.2B |
| Forward P/E |
41.7x
|
15.1x
|
| EV / EBITDA |
27.2x
|
14.3x
|
| Price / Sales |
5.5x
|
0.6x
|
| Price / FCF |
36.1x
|
17.2x
|
| Revenue Growth YoY |
+8.5%
|
+11.8%
|
| Gross Margin |
32.3%
|
18.5%
|
| Operating Margin |
16.6%
|
4.2%
|
| Return on Equity |
45.1%
|
12.7%
|
| Dividend Yield |
0% |
2.9% |
| FCF Yield |
2.77%
|
5.82%
|
| Analyst Consensus |
Buy
|
Buy
|
Investment Thesis
Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, engines, and industrial machinery, with a strong global footprint and a record $67.6 billion in revenues for 2025. The company benefits from a durable competitive position supported by a broad product portfolio and a large installed base, but faces margin pressure from tariffs and cost inflation. Despite so…
UnitedHealth Group is the world's largest diversified healthcare company, combining the dominant US health insurer UnitedHealthcare with the high-margin Optum services platform spanning care delivery, pharmacy benefits, and data analytics. The stock has fallen roughly 49% from its 2024 peak of $596, driven by elevated medical costs, DOJ antitrust scrutiny, CEO transitions (Brian Thompson's murder…
Accumulation Zones
| Metric |
CAT |
UNH |
| Zone Low |
$542.35 |
$280.00 |
| Zone High |
$614.66 |
$340.00 |
| In Buy Zone? |
No
|
Yes
|