CAT vs XOM: Which Is the Better Buy?
Side-by-side comparison of Caterpillar Inc. and Exxon Mobil Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Caterpillar Inc. · Industrials
$792.65
-8.8% upside to fair value
Grade D
VS
Exxon Mobil Corporation · Energy
$152.30
-33.0% upside to fair value
Med Conviction
Grade C+
QuantHub Verdict
CAT has more upside to fair value
(-8.8%).
XOM trades at a lower forward P/E
(17.5x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
CAT |
XOM |
| Current Price |
$792.65 |
$152.30 |
| Fair Value Estimate |
$723.13 |
$102.00 |
| Upside to Fair Value |
-8.8%
|
-33.0%
|
| Market Cap |
$370.9B |
$634.6B |
| Forward P/E |
41.7x
|
17.5x
|
| EV / EBITDA |
27.2x
|
9.8x
|
| Price / Sales |
5.5x
|
2.0x
|
| Price / FCF |
36.1x
|
26.9x
|
| Revenue Growth YoY |
+8.5%
|
-4.5%
|
| Gross Margin |
32.3%
|
21.7%
|
| Operating Margin |
16.6%
|
10.5%
|
| Return on Equity |
45.1%
|
11.1%
|
| Dividend Yield |
0% |
2.65% |
| FCF Yield |
2.77%
|
3.72%
|
| Analyst Consensus |
Buy
|
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…
Exxon Mobil is a world-class integrated energy supermajor with unmatched Permian Basin scale following the Pioneer Natural Resources acquisition, a high-margin Guyana growth engine, and disciplined capital allocation. However, the stock remains significantly overvalued relative to its own 5-year history on every key metric. At $152, XOM trades at roughly 22x trailing earnings, 1.96x sales, and 27…
Accumulation Zones
| Metric |
CAT |
XOM |
| Zone Low |
$542.35 |
$77.00 |
| Zone High |
$614.66 |
$92.00 |
| In Buy Zone? |
No
|
No
|