PACCAR (PCAR) Competitors

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

Do analysts recommend CAT or PCAR?

Caterpillar currently has a consensus target price of $372.92, indicating a potential upside of 4.17%. PACCAR has a consensus target price of $104.14, indicating a potential upside of 10.29%. 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

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 raised its dividend for 30 consecutive years and PACCAR has raised its dividend for 5 consecutive years. Caterpillar is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the MarketBeat Community favor CAT or PCAR?

Caterpillar received 638 more outperform votes than PACCAR when rated by MarketBeat users. Likewise, 62.21% of users gave Caterpillar an outperform vote while only 52.67% of users gave PACCAR an outperform vote.

Company	Underperform	Outperform
Caterpillar	Outperform Votes 1220 62.21%	Underperform Votes 741 37.79%
PACCAR	Outperform Votes 582 52.67%	Underperform Votes 523 47.33%

Which has better earnings and 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	2.67	$10.79B	$20.52	17.45
PACCAR	$32.36B	1.53	$4.16B	$6.60	14.31

Do insiders & institutionals hold more shares of CAT or PCAR?

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

Does the media refer more to CAT or PCAR?

In the previous week, Caterpillar had 33 more articles in the media than PACCAR. MarketBeat recorded 43 mentions for Caterpillar and 10 mentions for PACCAR. Caterpillar's average media sentiment score of 1.11 beat PACCAR's score of 0.53 indicating that Caterpillar is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Caterpillar	33 Very Positive mention(s)	2 Positive mention(s)	6 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Positive
PACCAR	5 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

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 volatility & risk, CAT or PCAR?

Caterpillar has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, PACCAR has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Summary

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