Terex (TEX) Competitors

Terex (NYSE:TEX) and Caterpillar (NYSE:CAT) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their media sentiment, valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Which has preferable valuation and earnings, TEX or CAT?

Caterpillar has higher revenue and earnings than Terex. Terex 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
Terex	$5.13B	0.64	$335M	$2.68	18.63
Caterpillar	$63.14B	3.09	$10.79B	$19.66	21.15

Is TEX or CAT more profitable?

Caterpillar has a net margin of 14.95% compared to Terex's net margin of 3.46%. Caterpillar's return on equity of 48.95% beat Terex's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Terex	3.46%	15.95%	5.64%
Caterpillar	14.95%	48.95%	10.60%

Do analysts recommend TEX or CAT?

Terex currently has a consensus target price of $52.22, indicating a potential upside of 4.62%. Caterpillar has a consensus target price of $455.53, indicating a potential upside of 9.55%. Given Caterpillar's stronger consensus rating and higher probable upside, analysts plainly believe Caterpillar is more favorable than Terex.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terex	0 Sell rating(s)	5 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.60
Caterpillar	0 Sell rating(s)	5 Hold rating(s)	11 Buy rating(s)	2 Strong Buy rating(s)	2.83

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

92.9% of Terex shares are held by institutional investors. Comparatively, 71.0% of Caterpillar shares are held by institutional investors. 1.9% of Terex shares are held by insiders. Comparatively, 0.3% of Caterpillar shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Does the media prefer TEX or CAT?

In the previous week, Caterpillar had 51 more articles in the media than Terex. MarketBeat recorded 58 mentions for Caterpillar and 7 mentions for Terex. Terex's average media sentiment score of 1.39 beat Caterpillar's score of 0.77 indicating that Terex is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Terex	5 Very Positive mention(s)	2 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Caterpillar	28 Very Positive mention(s)	7 Positive mention(s)	13 Neutral mention(s)	7 Negative mention(s)	2 Very Negative mention(s)	Positive

Is TEX or CAT a better dividend stock?

Terex pays an annual dividend of $0.68 per share and has a dividend yield of 1.4%. Caterpillar pays an annual dividend of $6.04 per share and has a dividend yield of 1.5%. Terex pays out 25.4% of its earnings in the form of a dividend. Caterpillar pays out 30.7% 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. Terex 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 more volatility & risk, TEX or CAT?

Terex has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, Caterpillar has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500.

Summary

Caterpillar beats Terex on 15 of the 20 factors compared between the two stocks.