CAT vs WFC: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Wells Fargo & Company — 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
Wells Fargo & Company · Financial Services
$86.12
+20.4% upside to fair value
Med Conviction
Grade B
QuantHub Verdict
WFC has more upside to fair value
(+20.4%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
WFC |
| Current Price |
$808.99 |
$86.12 |
| Fair Value Estimate |
$790.88 |
$103.68 |
| Upside to Fair Value |
-2.2%
|
+20.4%
|
| Market Cap |
$372.6B |
$260.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
15.6x
|
| Price / Sales |
5.0x
|
2.0x
|
| Price / FCF |
41.4x
|
13.7x
|
| Revenue Growth YoY |
+24.0%
|
+11.3%
|
| Gross Margin |
33.9%
|
64.5%
|
| Operating Margin |
17.5%
|
21.2%
|
| Return on Equity |
54.1%
|
12.6%
|
| Dividend Yield |
0.76% |
2.15% |
| FCF Yield |
2.41%
|
7.3%
|
| Analyst Consensus |
Buy
|
Hold
|
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%…
Wells Fargo is a diversified U.S. bank with roughly 197,000 employees operating four segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. The business quality is solid but not exceptional: trailing return on equity is 12.6%, TTM net margin is 17.5%, and revenue grew 11.3% year over year in the most recent quarter while…
Accumulation Zones
| Metric |
CAT |
WFC |
| Zone Low |
$593.16 |
$77.76 |
| Zone High |
$672.25 |
$88.13 |
| In Buy Zone? |
No
|
Yes
|