CAT vs WMT: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Walmart Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-08.
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C
High Quality
VS
Walmart Inc. · Consumer Defensive
$117.18
-39.6% upside to fair value
Grade C
High Quality
QuantHub Verdict
CAT has more upside to fair value
(-39.4%).
WMT trades at a lower forward P/E
(41.1x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
WMT |
| Current Price |
$940.12 |
$117.18 |
| Fair Value Estimate |
$569.47 |
$70.81 |
| Upside to Fair Value |
-39.4%
|
-39.6%
|
| Market Cap |
$433.1B |
$932.5B |
| Forward P/E |
46.6x
|
41.1x
|
| EV / EBITDA |
29.7x
|
20.7x
|
| Price / Sales |
6.1x
|
1.3x
|
| Price / FCF |
37.8x
|
74.3x
|
| Revenue Growth YoY |
+22.2%
|
+7.3%
|
| Gross Margin |
32.5%
|
25.0%
|
| Operating Margin |
16.6%
|
4.2%
|
| Return on Equity |
47.5%
|
24.3%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.64%
|
1.35%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
Caterpillar Inc. is a leading global manufacturer of agricultural and construction machinery, operating within the Industrials sector. The company demonstrates high business quality with a durable competitive moat supported by strong brand recognition, cost advantages, and intangible assets. It posted robust revenue growth of 22.2% and earnings growth of 27.3% in the most recent quarter, reflecti…
Walmart Inc. operates as a leading discount retailer with a strong competitive moat built on scale, cost leadership, and advanced logistics and technology infrastructure. The company benefits from a diversified revenue base with Walmart U.S. contributing 69%, International 18%, and Sam's Club 13%. Despite solid revenue growth of 7.3% and earnings growth of 25.9% in the most recent quarter, the st…
Accumulation Zones
| Metric |
CAT |
WMT |
| Zone Low |
$427.10 |
$53.11 |
| Zone High |
$484.05 |
$60.19 |
| In Buy Zone? |
No
|
No
|