CAT vs. DE, ABB, ETN, ITW, CTAS, EMR, JCI, PH, GWW, and ROK
Should you be buying Caterpillar stock or one of its competitors? The main competitors of Caterpillar include Deere & Company (DE), ABB (ABB), Eaton (ETN), Illinois Tool Works (ITW), Cintas (CTAS), Emerson Electric (EMR), Johnson Controls International (JCI), Parker-Hannifin (PH), W.W. Grainger (GWW), and Rockwell Automation (ROK). These companies are all part of the "industrial products" sector.
Caterpillar vs.
Caterpillar (NYSE:CAT) and Deere & Company (NYSE:DE) are both large-cap industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their community ranking, media sentiment, earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.
Deere & Company has lower revenue, but higher earnings than Caterpillar. Deere & Company is trading at a lower price-to-earnings ratio than Caterpillar, indicating that it is currently the more affordable of the two stocks.
68.0% of Caterpillar shares are held by institutional investors. Comparatively, 75.7% of Deere & Company shares are held by institutional investors. 0.3% of Caterpillar shares are held by company insiders. Comparatively, 0.3% of Deere & Company shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
In the previous week, Deere & Company had 38 more articles in the media than Caterpillar. MarketBeat recorded 55 mentions for Deere & Company and 17 mentions for Caterpillar. Caterpillar's average media sentiment score of 0.17 beat Deere & Company's score of 0.07 indicating that Caterpillar is being referred to more favorably in the media.
Caterpillar received 18 more outperform votes than Deere & Company when rated by MarketBeat users. However, 66.16% of users gave Deere & Company an outperform vote while only 62.61% of users gave Caterpillar an outperform vote.
Deere & Company has a net margin of 15.00% compared to Caterpillar's net margin of 11.52%. Caterpillar's return on equity of 50.98% beat Deere & Company's return on equity.
Caterpillar presently has a consensus price target of $238.94, indicating a potential upside of 12.82%. Deere & Company has a consensus price target of $443.86, indicating a potential upside of 24.26%. Given Deere & Company's stronger consensus rating and higher probable upside, analysts plainly believe Deere & Company is more favorable than Caterpillar.
Caterpillar has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Deere & Company has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Caterpillar pays an annual dividend of $4.80 per share and has a dividend yield of 2.3%. Deere & Company pays an annual dividend of $5.00 per share and has a dividend yield of 1.4%. Caterpillar pays out 35.5% of its earnings in the form of a dividend. Deere & Company pays out 16.8% 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.
Summary
Caterpillar and Deere & Company tied by winning 10 of the 20 factors compared between the two stocks.
New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding CAT and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
Caterpillar Competitors List
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