Terex (TEX) Competitors

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

Is CAT or TEX a better dividend stock?

Caterpillar pays an annual dividend of $6.04 per share and has a dividend yield of 1.3%. Terex pays an annual dividend of $0.68 per share and has a dividend yield of 1.3%. Caterpillar pays out 30.7% of its earnings in the form of a dividend. Terex pays out 25.4% 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. Caterpillar has raised its dividend for 30 consecutive years and Terex has raised its dividend for 5 consecutive years. Terex is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has better earnings & valuation, CAT or TEX?

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
Caterpillar	$64.81B	3.41	$10.79B	$19.66	24.01
Terex	$5.13B	0.67	$335M	$2.68	19.40

Does the media refer more to CAT or TEX?

In the previous week, Caterpillar had 89 more articles in the media than Terex. MarketBeat recorded 98 mentions for Caterpillar and 9 mentions for Terex. Caterpillar's average media sentiment score of 1.36 beat Terex's score of 1.09 indicating that Caterpillar is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Caterpillar	66 Very Positive mention(s)	6 Positive mention(s)	9 Neutral mention(s)	3 Negative mention(s)	0 Very Negative mention(s)	Positive
Terex	7 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is CAT or TEX 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
Caterpillar	14.95%	48.95%	10.60%
Terex	3.46%	15.95%	5.64%

Which has more risk & volatility, CAT or TEX?

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

Do analysts rate CAT or TEX?

Caterpillar presently has a consensus target price of $462.87, suggesting a potential downside of 1.93%. Terex has a consensus target price of $54.67, suggesting a potential upside of 5.15%. Given Terex's higher possible upside, analysts plainly believe Terex is more favorable than Caterpillar.

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

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

71.0% of Caterpillar shares are owned by institutional investors. Comparatively, 92.9% of Terex shares are owned by institutional investors. 0.3% of Caterpillar shares are owned by company insiders. Comparatively, 1.9% of Terex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Caterpillar beats Terex on 14 of the 20 factors compared between the two stocks.