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STOCK COMPARISON

Caterpillar vs Eaton Corporation: Fair Value & Quality

Both stocks run through our valuation models. Here is how Caterpillar (CAT) and Eaton Corporation (ETN) compare, as of Aug 13, 2026.

As of Aug 13, 2026, Fair Value Calculator sees Eaton Corporation as the less overvalued of the two: Caterpillar trades at $856 versus a fair value of $308 (-64%), while Eaton Corporation trades at $460 versus $172 (-63%).
Caterpillar
CAT · USD · Industrials
-64%
upside to fair value
overvalued
Price$856
Fair Value$308
Quality64/100
Eaton Corporation
ETN · USD · Industrials
-63%
upside to fair value
overvalued
Price$460
Fair Value$172
Quality72/100

Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

CaterpillarEaton Corporation
Valuation
42.9×P/E (TTM)43.8×
6.11×P/S (TTM)5.55×
20.27×P/B8.14×
31.1×EV/EBITDA26.2×
2.25×PEG3.07×
0.6%Dividend yield1.0%
$6.04Dividend per share$4.22
Profitability
13%Net margin14%
18%Operating margin16%
51%Return on equity21%
9%Return on assets7%
Growth
22%Revenue growth (YoY)17%
4.4%Avg. growth/yr (3Y)9.8%
10.1%Avg. growth/yr (5Y)9.0%
Balance & size
1.44×Debt / equity0.45×
$432BMarket cap$158B
healthyGrowth qualityhealthy

Even match: 7 to 7 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Caterpillarof which business quality 62 · market factors 61 Eaton Corporationof which business quality 68 · market factors 63
ProfitabilityMargins and returns on capital today
61
59
Quality GrowthAre margins and returns improving?
22
49
CashflowEarnings quality: real cash, not paper profit
68
61
Fin. StrengthBalance sheet, leverage, solvency risk
51
69
InvestmentDisciplined investing over empire-building
72
81
Low VolatilityCalm price path (market factor)
32
48
MomentumPrice trend over the last 3–12 months (market factor)
68
62
52W MomentumDistance to the 52-week high (market factor)
84
83
Net IssuanceBuybacks instead of dilution
100
96

What the models say

The median fair value (base case) per model family, each in the currency of its trading venue. Green = above the current price, red = below.

Caterpillar

DCF Models$365
Earnings-Based$151
Dividend Discount$111
Multiples$314
Asset-Based$31.01
Growth DCF$326
Economic Profit$220
Growth Earnings$361

26 of 26 models see the stock below the current price.

Eaton Corporation

DCF Models$175
Earnings-Based$82.02
Dividend Discount$70.56
Multiples$183
Asset-Based$33.52
Growth DCF$150
Economic Profit$105
Growth Earnings$190

26 of 26 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Caterpillar
Bear $192Fair Value $308Bull $403
$856 = current price (white tick)
Eaton Corporation
Bear $107Fair Value $172Bull $234
$460 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Caterpillar · Industrials

Quality score64 · Top 25%
Fair value upside-64% · bottom 25%

Eaton Corporation · Industrials

Quality score72 · Top 25%
Fair value upside-63% · bottom 25%

Bottom line

As of Aug 13, 2026, Fair Value Calculator sees Eaton Corporation as the less overvalued of the two: Caterpillar trades at $856 versus a fair value of $308 (-64%), while Eaton Corporation trades at $460 versus $172 (-63%).

Eaton Corporation has the higher quality score (72/100).

See the full analysis →
Caterpillar · Eaton Corporation

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A model-based valuation snapshot from 21 models. Values change with price and fundamentals; the date shown above applies.