Terex (TEX) Competitors

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

Do analysts rate TEX or CAT?

Terex currently has a consensus price target of $52.22, indicating a potential upside of 3.14%. Caterpillar has a consensus price target of $444.00, indicating a potential upside of 7.71%. Given Caterpillar's stronger consensus rating and higher possible upside, analysts clearly 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)	6 Hold rating(s)	10 Buy rating(s)	2 Strong Buy rating(s)	2.78

Which has more volatility & risk, TEX or CAT?

Terex has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Caterpillar has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

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%

Which has higher 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	$5.13B	0.65	$335M	$2.68	18.89
Caterpillar	$64.81B	2.98	$10.79B	$19.66	20.97

Does the media favor TEX or CAT?

In the previous week, Caterpillar had 78 more articles in the media than Terex. MarketBeat recorded 82 mentions for Caterpillar and 4 mentions for Terex. Caterpillar's average media sentiment score of 0.98 beat Terex's score of 0.64 indicating that Caterpillar is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Terex	2 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Caterpillar	53 Very Positive mention(s)	4 Positive mention(s)	14 Neutral mention(s)	3 Negative mention(s)	1 Very Negative mention(s)	Positive

Do institutionals and insiders believe in 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.

Is TEX or CAT a better dividend stock?

Terex pays an annual dividend of $0.68 per share and has a dividend yield of 1.3%. 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 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.

Summary

Caterpillar beats Terex on 16 of the 20 factors compared between the two stocks.