DE vs. CAT, PCAR, CMI, WAB, TTC, AGCO, OSK, FSS, TEX, and TRN
Should you be buying Deere & Company stock or one of its competitors? The main competitors of Deere & Company include Caterpillar (CAT), PACCAR (PCAR), Cummins (CMI), Westinghouse Air Brake Technologies (WAB), Toro (TTC), AGCO (AGCO), Oshkosh (OSK), Federal Signal (FSS), Terex (TEX), and Trinity Industries (TRN). These companies are all part of the "construction & farm machinery & heavy trucks" industry.
Deere & Company (NYSE:DE) and Caterpillar (NYSE:CAT) are both large-cap industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, community ranking, media sentiment, institutional ownership and valuation.
Caterpillar has a net margin of 16.79% compared to Deere & Company's net margin of 16.15%. Caterpillar's return on equity of 58.61% beat Deere & Company's return on equity.
Caterpillar received 35 more outperform votes than Deere & Company when rated by MarketBeat users. However, 65.30% of users gave Deere & Company an outperform vote while only 62.49% of users gave Caterpillar an outperform vote.
68.6% of Deere & Company shares are owned by institutional investors. Comparatively, 71.0% of Caterpillar shares are owned by institutional investors. 0.3% of Deere & Company shares are owned by insiders. Comparatively, 0.3% of Caterpillar shares are owned by 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 has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Caterpillar has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
Deere & Company currently has a consensus price target of $432.92, suggesting a potential upside of 15.52%. Caterpillar has a consensus price target of $323.35, suggesting a potential downside of 4.48%. Given Deere & Company's stronger consensus rating and higher probable upside, research analysts clearly believe Deere & Company is more favorable than Caterpillar.
Caterpillar has higher revenue and earnings than Deere & Company. Deere & Company is trading at a lower price-to-earnings ratio than Caterpillar, indicating that it is currently the more affordable of the two stocks.
Deere & Company pays an annual dividend of $5.88 per share and has a dividend yield of 1.6%. Caterpillar pays an annual dividend of $5.20 per share and has a dividend yield of 1.5%. Deere & Company pays out 17.7% of its earnings in the form of a dividend. Caterpillar pays out 23.5% 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.
In the previous week, Deere & Company and Deere & Company both had 21 articles in the media. Deere & Company's average media sentiment score of 0.64 beat Caterpillar's score of 0.44 indicating that Deere & Company is being referred to more favorably in the media.
Summary
Caterpillar beats Deere & Company on 11 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DE 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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