PACCAR (PCAR) Competitors

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

Which has higher earnings and valuation, PCAR or CAT?

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
PACCAR	$33.66B	1.41	$4.16B	$7.91	11.40
Caterpillar	$64.81B	2.28	$10.79B	$22.07	14.02

Does the media favor PCAR or CAT?

In the previous week, Caterpillar had 34 more articles in the media than PACCAR. MarketBeat recorded 65 mentions for Caterpillar and 31 mentions for PACCAR. PACCAR's average media sentiment score of 0.82 beat Caterpillar's score of 0.58 indicating that PACCAR is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
PACCAR	16 Very Positive mention(s)	0 Positive mention(s)	8 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive
Caterpillar	28 Very Positive mention(s)	5 Positive mention(s)	17 Neutral mention(s)	8 Negative mention(s)	5 Very Negative mention(s)	Positive

Is PCAR or CAT a better dividend stock?

PACCAR pays an annual dividend of $1.32 per share and has a dividend yield of 1.5%. Caterpillar pays an annual dividend of $5.64 per share and has a dividend yield of 1.8%. PACCAR pays out 16.7% of its earnings in the form of a dividend. Caterpillar pays out 25.6% 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. Caterpillar is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Is PCAR or CAT 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
PACCAR	12.36%	23.53%	9.89%
Caterpillar	16.65%	58.18%	12.57%

Does the MarketBeat Community believe in PCAR or CAT?

Caterpillar received 633 more outperform votes than PACCAR when rated by MarketBeat users. Likewise, 62.26% of users gave Caterpillar an outperform vote while only 52.82% of users gave PACCAR an outperform vote.

Company	Underperform	Outperform
PACCAR	Outperform Votes 581 52.82%	Underperform Votes 519 47.18%
Caterpillar	Outperform Votes 1214 62.26%	Underperform Votes 736 37.74%

Do institutionals and insiders believe in PCAR or CAT?

64.9% of PACCAR shares are owned by institutional investors. Comparatively, 71.0% of Caterpillar shares are owned by institutional investors. 2.0% of PACCAR shares are owned by company insiders. Comparatively, 0.3% of Caterpillar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Which has more volatility and risk, PCAR or CAT?

PACCAR has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Caterpillar has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Do analysts prefer PCAR or CAT?

PACCAR currently has a consensus price target of $107.23, suggesting a potential upside of 18.86%. Caterpillar has a consensus price target of $361.91, suggesting a potential upside of 16.98%. Given PACCAR's higher probable upside, equities research analysts plainly believe PACCAR is more favorable than Caterpillar.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACCAR	1 Sell rating(s)	8 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.36
Caterpillar	1 Sell rating(s)	5 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.46

Summary

Caterpillar beats PACCAR on 17 of the 22 factors compared between the two stocks.