ETN vs. DE, ABBNY, ITW, CAT, PH, CTAS, EMR, GWW, JCI, and FERG
Should you be buying Eaton stock or one of its competitors? The main competitors of Eaton include Deere & Company (DE), ABB (ABBNY), Illinois Tool Works (ITW), Caterpillar (CAT), Parker-Hannifin (PH), Cintas (CTAS), Emerson Electric (EMR), W.W. Grainger (GWW), Johnson Controls International (JCI), and Ferguson (FERG). These companies are all part of the "industrial products" sector.
Eaton (NYSE:ETN) and Deere & Company (NYSE:DE) are both large-cap industrial products companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, community ranking, dividends, institutional ownership, valuation, analyst recommendations, media sentiment, profitability and earnings.
In the previous week, Deere & Company had 22 more articles in the media than Eaton. MarketBeat recorded 32 mentions for Deere & Company and 10 mentions for Eaton. Eaton's average media sentiment score of 1.07 beat Deere & Company's score of 0.56 indicating that Eaton is being referred to more favorably in the media.
Eaton pays an annual dividend of $3.76 per share and has a dividend yield of 1.2%. Deere & Company pays an annual dividend of $5.88 per share and has a dividend yield of 1.5%. Eaton pays out 46.9% of its earnings in the form of a dividend. Deere & Company pays out 17.1% 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. Deere & Company is clearly the better dividend stock, given its higher yield and lower payout ratio.
83.0% of Eaton shares are held by institutional investors. Comparatively, 68.6% of Deere & Company shares are held by institutional investors. 0.5% of Eaton 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Deere & Company received 248 more outperform votes than Eaton when rated by MarketBeat users. However, 66.57% of users gave Eaton an outperform vote while only 65.33% of users gave Deere & Company an outperform vote.
Deere & Company has higher revenue and earnings than Eaton. Deere & Company is trading at a lower price-to-earnings ratio than Eaton, indicating that it is currently the more affordable of the two stocks.
Deere & Company has a net margin of 16.38% compared to Eaton's net margin of 13.88%. Deere & Company's return on equity of 44.60% beat Eaton's return on equity.
Eaton has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Deere & Company has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.
Eaton presently has a consensus price target of $295.60, suggesting a potential downside of 4.32%. Deere & Company has a consensus price target of $433.28, suggesting a potential upside of 8.08%. Given Deere & Company's higher possible upside, analysts clearly believe Deere & Company is more favorable than Eaton.
Summary
Eaton and Deere & Company tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ETN and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
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.
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