CAT vs VRT: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Vertiv Holdings Co — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-18.
Caterpillar Inc. · Industrials
$792.65
-8.8% upside to fair value
Grade D
VS
Vertiv Holdings Co · Industrials
$307.34
-11.3% upside to fair value
Grade D
High Quality
QuantHub Verdict
CAT has more upside to fair value
(-8.8%).
CAT trades at a lower forward P/E
(41.7x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
VRT |
| Current Price |
$792.65 |
$307.34 |
| Fair Value Estimate |
$723.13 |
$272.65 |
| Upside to Fair Value |
-8.8%
|
-11.3%
|
| Market Cap |
$370.9B |
$117.6B |
| Forward P/E |
41.7x
|
88.2x
|
| EV / EBITDA |
27.2x
|
55.3x
|
| Price / Sales |
5.5x
|
11.5x
|
| Price / FCF |
36.1x
|
61.2x
|
| Revenue Growth YoY |
+8.5%
|
+7.6%
|
| Gross Margin |
32.3%
|
34.8%
|
| Operating Margin |
16.6%
|
18.2%
|
| Return on Equity |
45.1%
|
40.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.77%
|
1.63%
|
| Analyst Consensus |
Buy
|
Strong 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…
Vertiv Holdings Co operates as a global leader in digital critical infrastructure, providing technology products and solutions primarily for data centers, telecom, and AI-driven markets. The company demonstrates strong business quality with 40.3% return on equity, 7.6% revenue growth, and 11.8% earnings growth year-over-year, supported by a robust $1.89 billion free cash flow and a $15 billion ba…
Accumulation Zones
| Metric |
CAT |
VRT |
| Zone Low |
$542.35 |
$204.49 |
| Zone High |
$614.66 |
$231.75 |
| In Buy Zone? |
No
|
No
|