Terex (TEX) Competitors

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

Which has more volatility and risk, TEX or CAT?

Terex has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Caterpillar has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.

Is TEX or CAT more profitable?

Caterpillar has a net margin of 15.71% compared to Terex's net margin of 4.89%. Caterpillar's return on equity of 53.77% beat Terex's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Terex	4.89%	18.79%	7.32%
Caterpillar	15.71%	53.77%	11.64%

Which has preferable earnings & valuation, 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	$5.06B	0.66	$335M	$3.67	13.72
Caterpillar	$64.81B	3.03	$10.79B	$20.52	20.33

Do analysts rate TEX or CAT?

Terex currently has a consensus target price of $51.44, indicating a potential upside of 2.16%. Caterpillar has a consensus target price of $419.33, indicating a potential upside of 0.50%. Given Terex's higher probable upside, equities research analysts clearly believe Terex is more favorable than Caterpillar.

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)	6 Hold rating(s)	10 Buy rating(s)	2 Strong Buy rating(s)	2.78

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

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 1.4%. Terex pays out 18.5% of its earnings in the form of a dividend. Caterpillar pays out 29.4% 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. Terex has increased its dividend for 5 consecutive years and Caterpillar has increased its dividend for 30 consecutive years. Caterpillar is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the media prefer TEX or CAT?

In the previous week, Caterpillar had 60 more articles in the media than Terex. MarketBeat recorded 71 mentions for Caterpillar and 11 mentions for Terex. Caterpillar's average media sentiment score of 1.12 beat Terex's score of 0.86 indicating that Caterpillar is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Terex	5 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Caterpillar	51 Very Positive mention(s)	4 Positive mention(s)	12 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive

Summary

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