Caterpillar (NYSE:CAT) Vs. DE, PCAR, CMI, WAB, TTC, AGCO, OSK, TEX, TRN, and FSS
Should you be buying Caterpillar stock or one of its competitors? The main competitors of Caterpillar include Deere & Company (DE), PACCAR (PCAR), Cummins (CMI), Westinghouse Air Brake Technologies (WAB), Toro (TTC), AGCO (AGCO), Oshkosh (OSK), Terex (TEX), Trinity Industries (TRN), and Federal Signal (FSS). These companies are all part of the "construction & farm machinery & heavy trucks" industry.
Caterpillar vs.
PACCAR (NASDAQ:PCAR) and Caterpillar (NYSE:CAT) are both large-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their media sentiment, institutional ownership, valuation, community ranking, risk, analyst recommendations, earnings, dividends and profitability.
PACCAR presently has a consensus price target of $101.54, indicating a potential upside of 8.92%. Caterpillar has a consensus price target of $240.00, indicating a potential upside of 13.12%. Given Caterpillar's stronger consensus rating and higher probable upside, analysts clearly believe Caterpillar is more favorable than PACCAR.
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.
Caterpillar has a net margin of 10.64% compared to PACCAR's net margin of 7.80%. Caterpillar's return on equity of 34.41% beat PACCAR's return on equity.
PACCAR has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Caterpillar has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Caterpillar received 595 more outperform votes than PACCAR when rated by MarketBeat users. Likewise, 64.19% of users gave Caterpillar an outperform vote while only 55.20% of users gave PACCAR an outperform vote.
PACCAR pays an annual dividend of $1.36 per share and has a dividend yield of 1.5%. Caterpillar pays an annual dividend of $4.44 per share and has a dividend yield of 2.1%. PACCAR pays out 27.1% of its earnings in the form of a dividend. Caterpillar pays out 47.5% 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 increased its dividend for 11 consecutive years and Caterpillar has increased its dividend for 28 consecutive years. Caterpillar is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
62.5% of PACCAR shares are owned by institutional investors. Comparatively, 67.2% of Caterpillar shares are owned by institutional investors. 2.1% of PACCAR shares are owned by company insiders. Comparatively, 0.2% of Caterpillar shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
In the previous week, PACCAR had 16 more articles in the media than Caterpillar. MarketBeat recorded 34 mentions for PACCAR and 18 mentions for Caterpillar. PACCAR's average media sentiment score of 0.39 beat Caterpillar's score of 0.32 indicating that PACCAR is being referred to more favorably in the media.
Summary
Caterpillar beats PACCAR on 16 of the 22 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 (NYSE:CAT) vs. Its Competitors
Caterpillar Competitors List
