PACCAR (PCAR) Competitors

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

Do analysts recommend PCAR or CAT?

PACCAR currently has a consensus price target of $104.59, suggesting a potential upside of 10.03%. Caterpillar has a consensus price target of $380.83, suggesting a potential downside of 1.99%. 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)	7 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.38
Caterpillar	0 Sell rating(s)	5 Hold rating(s)	9 Buy rating(s)	1 Strong Buy rating(s)	2.73

Is PCAR or CAT more profitable?

Caterpillar has a net margin of 15.71% compared to PACCAR's net margin of 10.73%. Caterpillar's return on equity of 53.77% beat PACCAR's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
PACCAR	10.73%	20.79%	8.76%
Caterpillar	15.71%	53.77%	11.64%

Is PCAR or CAT a better dividend stock?

PACCAR pays an annual dividend of $1.32 per share and has a dividend yield of 1.4%. Caterpillar pays an annual dividend of $5.64 per share and has a dividend yield of 1.5%. PACCAR pays out 20.0% of its earnings in the form of a dividend. Caterpillar pays out 27.5% 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. PACCAR has raised its dividend for 5 consecutive years and Caterpillar has raised its dividend for 30 consecutive years. Caterpillar is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has stronger valuation and earnings, 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	1.48	$4.16B	$6.60	14.40
Caterpillar	$64.81B	2.82	$10.79B	$20.52	18.94

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

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

Does the media prefer PCAR or CAT?

In the previous week, Caterpillar had 26 more articles in the media than PACCAR. MarketBeat recorded 57 mentions for Caterpillar and 31 mentions for PACCAR. PACCAR's average media sentiment score of 1.28 beat Caterpillar's score of 1.24 indicating that PACCAR is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
PACCAR	21 Very Positive mention(s)	2 Positive mention(s)	6 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Caterpillar	48 Very Positive mention(s)	2 Positive mention(s)	5 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk and volatility, PCAR or CAT?

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

Summary

Caterpillar beats PACCAR on 15 of the 19 factors compared between the two stocks.