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 2026-07-08.
Caterpillar Inc. · Industrials
$940.12
-39.4% upside to fair value
Grade C
High Quality
VS
Exxon Mobil Corporation · Energy
$137.81
-45.0% upside to fair value
Grade C
QuantHub Verdict
CAT has more upside to fair value
(-39.4%).
XOM trades at a lower forward P/E
(22.8x).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
XOM |
| Current Price |
$940.12 |
$137.81 |
| Fair Value Estimate |
$569.47 |
$75.80 |
| Upside to Fair Value |
-39.4%
|
-45.0%
|
| Market Cap |
$433.1B |
$571.2B |
| Forward P/E |
46.6x
|
22.8x
|
| EV / EBITDA |
29.7x
|
10.1x
|
| Price / Sales |
6.1x
|
1.8x
|
| Price / FCF |
37.8x
|
30.4x
|
| Revenue Growth YoY |
+22.2%
|
+2.6%
|
| Gross Margin |
32.5%
|
25.5%
|
| Operating Margin |
16.6%
|
9.0%
|
| Return on Equity |
47.5%
|
9.8%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
2.64%
|
3.29%
|
| Analyst Consensus |
Hold
|
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…
Exxon Mobil Corporation is a leading integrated oil and gas company with a durable competitive moat based on its scale, integration, advantaged long-life resources, proprietary technology, and irreplaceable infrastructure. The company is led by a long-tenured management team with a strong capital allocation track record focused on dividends and buybacks. Despite these strengths, Exxon is currentl…
Accumulation Zones
| Metric |
CAT |
XOM |
| Zone Low |
$427.10 |
$56.85 |
| Zone High |
$484.05 |
$64.43 |
| In Buy Zone? |
No
|
No
|