CAT vs WDC: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Western Digital Corporation — 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
Western Digital Corporation · Technology
$441.36
-16.8% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
CAT has more upside to fair value
(-2.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
WDC |
| Current Price |
$808.99 |
$441.36 |
| Fair Value Estimate |
$790.88 |
$367.30 |
| Upside to Fair Value |
-2.2%
|
-16.8%
|
| Market Cap |
$372.6B |
$152.1B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
17.4x
|
| Price / Sales |
5.0x
|
11.8x
|
| Price / FCF |
41.4x
|
47.3x
|
| Revenue Growth YoY |
+24.0%
|
+43.8%
|
| Gross Margin |
33.9%
|
48.9%
|
| Operating Margin |
17.5%
|
34.9%
|
| Return on Equity |
54.1%
|
118.6%
|
| Dividend Yield |
0.76% |
0.12% |
| FCF Yield |
2.41%
|
2.12%
|
| 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%…
Western Digital designs and manufactures hard disk drives and flash-based storage for data centers, client devices, and consumer markets, and it is currently enjoying an extraordinary demand surge tied to AI infrastructure buildouts. In the most recent quarter, revenue grew 43.8% year over year and earnings grew 1143.2% year over year, while trailing twelve-month gross margin reached 48.9%, opera…
Accumulation Zones
| Metric |
CAT |
WDC |
| Zone Low |
$593.16 |
$275.48 |
| Zone High |
$672.25 |
$312.20 |
| In Buy Zone? |
No
|
No
|