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 2026-09-21.
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
VS
Walmart Inc. · Consumer Defensive
$106.73
-10.8% upside to fair value
Med Conviction
Grade C
High Quality
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 |
WMT |
| Current Price |
$808.99 |
$106.73 |
| Fair Value Estimate |
$790.88 |
$95.24 |
| Upside to Fair Value |
-2.2%
|
-10.8%
|
| Market Cap |
$372.6B |
$849.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
21.3x
|
| Price / Sales |
5.0x
|
1.1x
|
| Price / FCF |
41.4x
|
62.8x
|
| Revenue Growth YoY |
+24.0%
|
+5.9%
|
| Gross Margin |
33.9%
|
25.2%
|
| Operating Margin |
17.5%
|
4.4%
|
| Return on Equity |
54.1%
|
22.7%
|
| Dividend Yield |
0.76% |
0.92% |
| FCF Yield |
2.41%
|
1.59%
|
| 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%…
Walmart Inc. is the world's largest retailer by revenue, operating more than 10,000 stores and clubs across Walmart U.S., Walmart International, and Sam's Club, with a fast-growing e-commerce and advertising ecosystem layered on top of a grocery-led, everyday-low-price model. The business quality is high: scale and sourcing power underpin a durable cost advantage, ROE is 22.7%, and revenue grew 5…
Accumulation Zones
| Metric |
CAT |
WMT |
| Zone Low |
$593.16 |
$71.43 |
| Zone High |
$672.25 |
$80.95 |
| In Buy Zone? |
No
|
No
|