Caterpillar or Deere: which stock is cheaper in 2026?
As of October 5, 2026, Caterpillar (CAT) trades at 36.4× earnings (P/E) and Deere (DE) at 38.2×, according to Kaplio. The median across the 273 industrials companies above $2bn in Kaplio's universe is 26.1×. Kaplio's verdict: Caterpillar, no verdict; Deere, no verdict. Value range by multiples: $411–$606 for Caterpillar and $378–$469 for Deere. Both trade at a similar distance from their value range.
According to the Kaplio Summary
The same verdict as each company's page: price range by multiples, the four lights, the expected return if consensus is right and what Buffett and Lynch would say today.
| Caterpillar (CAT) | Deere (DE) | |
|---|---|---|
| Summary valuation | no verdict ($411–$606) | no verdict ($378–$469) |
| The four lights | Valuation: P/E 36.4× (no verdict) Business: ROIC 11 % (fair) Balance sheet: Net debt/EBITDA 2.2× (solid) Results: 5 of 8 (uneven) | Valuation: P/E 38.2× (no verdict) Business: ROIC 7 % (weak) Balance sheet: Net debt/EBITDA 4.8× (fragile) Results: 8 of 8 (on track) |
| Expected return (per year) | -9.3 % a year (to 2028) | -8.3 % a year (to 2028) |
| Buffett method | not his style | not his style |
| Lynch method | stalwart · would wait | stalwart · would not approve |
Metrics side by side
| Metric | Caterpillar (CAT) | Deere (DE) |
|---|---|---|
| Overview | ||
| Market Cap | $389B | $185B |
| Price | $845.42 | $687.00 |
| Valuation | ||
| P/E | 36.4× | 38.2× |
| P/B | 20.1× | 6.6× |
| P/S | 5.2× | 3.9× |
| EV/EBITDA | 24.3× | 21.7× |
| FCF Yield | 2.3 % | 2.1 % |
| Dividend Yield | 0.7 % | 0.9 % |
| Profitability | ||
| ROIC | 11.0 % | 7.0 % |
| ROE | 54.1 % | 18.1 % |
| Gross Margin | 33.9 % | 35.7 % |
| Operating Margin | 17.5 % | 19.0 % |
| Net Margin | 14.5 % | 10.2 % |
| Growth | ||
| Revenue 5Y CAGR | 10.1 % | 5.2 % |
| EPS 5Y CAGR | 28.0 % | 16.2 % |
| FCF 5Y CAGR | 12.1 % | -7.7 % |
| Balance Sheet | ||
| Net Debt / EBITDA | 2.2× | 4.8× |
| Debt / Equity | 2.3× | 2.3× |
Trailing twelve months where available; otherwise the latest fiscal year. Growth: five-year compound annual rate.