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 2026-09-21.
Caterpillar Inc. · Industrials
$808.99
-2.2% upside to fair value
Med Conviction
Grade C
High Quality
VS
Exxon Mobil Corporation · Energy
$163.18
+10.3% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
XOM has more upside to fair value
(+10.3%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
CAT |
XOM |
| Current Price |
$808.99 |
$163.18 |
| Fair Value Estimate |
$790.88 |
$179.98 |
| Upside to Fair Value |
-2.2%
|
+10.3%
|
| Market Cap |
$372.6B |
$676.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
23.6x
|
9.9x
|
| Price / Sales |
5.0x
|
1.9x
|
| Price / FCF |
41.4x
|
22.3x
|
| Revenue Growth YoY |
+24.0%
|
+44.1%
|
| Gross Margin |
33.9%
|
25.1%
|
| Operating Margin |
17.5%
|
10.7%
|
| Return on Equity |
54.1%
|
12.7%
|
| Dividend Yield |
0.76% |
2.52% |
| FCF Yield |
2.41%
|
4.49%
|
| 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%…
Exxon Mobil is the largest integrated oil and gas major in the United States, operating across Upstream exploration and production, Downstream refining and fuels marketing, and Chemical manufacturing, with roughly 57,900 employees and a portfolio that spans conventional crude and natural gas, LNG, petrochemicals, and early-stage carbon capture, hydrogen, and biofuels ventures. The business qualit…
Accumulation Zones
| Metric |
CAT |
XOM |
| Zone Low |
$593.16 |
$134.98 |
| Zone High |
$672.25 |
$152.98 |
| In Buy Zone? |
No
|
No
|