PACCAR (PCAR) Competitors

Caterpillar (NYSE:CAT) and PACCAR (NASDAQ:PCAR) are both large-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their media sentiment, institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability, community ranking and risk.

Does the MarketBeat Community favor CAT or PCAR?

Caterpillar received 637 more outperform votes than PACCAR when rated by MarketBeat users. Likewise, 62.19% of users gave Caterpillar an outperform vote while only 52.67% of users gave PACCAR an outperform vote.

Company	Underperform	Outperform
Caterpillar	Outperform Votes 1219 62.19%	Underperform Votes 741 37.81%
PACCAR	Outperform Votes 582 52.67%	Underperform Votes 523 47.33%

Which has stronger earnings & valuation, CAT or PCAR?

Caterpillar has higher revenue and earnings than PACCAR. PACCAR is trading at a lower price-to-earnings ratio than Caterpillar, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Caterpillar	$63.26B	2.60	$10.79B	$20.52	17.01
PACCAR	$32.36B	1.57	$4.16B	$6.60	14.62

Is CAT or PCAR a better dividend stock?

Caterpillar pays an annual dividend of $5.64 per share and has a dividend yield of 1.6%. PACCAR pays an annual dividend of $1.32 per share and has a dividend yield of 1.4%. Caterpillar pays out 27.5% of its earnings in the form of a dividend. PACCAR pays out 20.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Caterpillar has increased its dividend for 30 consecutive years and PACCAR has increased its dividend for 5 consecutive years. Caterpillar is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Is CAT or PCAR more profitable?

Caterpillar has a net margin of 16.65% compared to PACCAR's net margin of 12.36%. Caterpillar's return on equity of 58.18% beat PACCAR's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Caterpillar	16.65%	58.18%	12.57%
PACCAR	12.36%	23.53%	9.89%

Which has more risk and volatility, CAT or PCAR?

Caterpillar has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, PACCAR has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Do analysts recommend CAT or PCAR?

Caterpillar presently has a consensus price target of $375.33, suggesting a potential upside of 7.54%. PACCAR has a consensus price target of $104.14, suggesting a potential upside of 7.91%. Given PACCAR's higher possible upside, analysts plainly believe PACCAR is more favorable than Caterpillar.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caterpillar	0 Sell rating(s)	5 Hold rating(s)	9 Buy rating(s)	1 Strong Buy rating(s)	2.73
PACCAR	1 Sell rating(s)	8 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.36

Do insiders & institutionals have more ownership in CAT or PCAR?

71.0% of Caterpillar shares are held by institutional investors. Comparatively, 64.9% of PACCAR shares are held by institutional investors. 0.3% of Caterpillar shares are held by insiders. Comparatively, 2.0% of PACCAR shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Does the media favor CAT or PCAR?

In the previous week, Caterpillar had 38 more articles in the media than PACCAR. MarketBeat recorded 69 mentions for Caterpillar and 31 mentions for PACCAR. Caterpillar's average media sentiment score of 0.87 beat PACCAR's score of 0.80 indicating that Caterpillar is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Caterpillar	39 Very Positive mention(s)	3 Positive mention(s)	14 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Positive
PACCAR	19 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Positive

Summary

Caterpillar beats PACCAR on 18 of the 21 factors compared between the two stocks.