Caterpillar Inc. (CAT) vs CNH Industrial N.V. (CNH)

Caterpillar Inc. and CNH Industrial N.V. are both Farm & Heavy Construction Machinery companies. Caterpillar Inc. is the larger, with a market value of $254.5B against $13.9B — 18.3× the size. Caterpillar Inc. trades at the lower P/E: 21.7× against 45.1×. Caterpillar Inc. grew revenue faster over the last twelve months: 20.3% against 0.64%. Caterpillar Inc. has the higher net margin (15.2% vs 1.71%) and the higher return on invested capital (15.2% vs 4.91%). Both pay a dividend; Caterpillar Inc. yields more (1.13% vs 0.89%). Across the 23 metrics below, Caterpillar Inc. leads on 16 and CNH Industrial N.V. on 7.

Valuation

Metric CAT CNH Farm & Heavy Construction Machinery median
P/E 21.67 45.08 21.67
P/S 3.28 0.77 0.77
P/B 11.86 1.79 1.31
Price to free cash flow 24.14 22.84 20.59
EV/EBITDA 17.31 12.03 11.30
EV/Sales 3.76 2.06 1.11
Earnings yield 4.61% 2.22% 3.08%
Free cash flow yield 4.14% 4.38% 3.12%

Profitability

Metric CAT CNH Farm & Heavy Construction Machinery median
Gross margin 34.78% 30.55% 22.91%
Operating margin 20.18% 13.52% 4.47%
Net margin 15.21% 1.71% 1.41%
Free cash flow margin 13.57% 3.36% 2.26%
Return on equity 56.15% 3.99% 3.99%
Return on assets 11.80% 0.72% 1.31%
Return on invested capital 15.16% 4.91% 4.09%

Growth

Metric CAT CNH Farm & Heavy Construction Machinery median
Revenue growth (TTM) 20.26% 0.64% 1.81%
EPS growth (last fiscal year) (14.69%) (58.59%) (27.79%)
Revenue growth, 5-year CAGR 10.12% (7.02%) 6.63%
Net income growth, 5-year CAGR 24.27% 0.00% 0.00%

Health

Metric CAT CNH Farm & Heavy Construction Machinery median
Debt to equity 2.10 3.33 0.66
Current ratio 1.42 12.23 1.98
Net debt to EBITDA 2.26 6.90 1.12

Dividend

Metric CAT CNH Farm & Heavy Construction Machinery median
Dividend yield 1.13% 0.89% 1.24%
Payout ratio 0.25 0.40 0.31

Size

Metric CAT CNH Farm & Heavy Construction Machinery median
Market cap 254.49b 13.92b 836.63m

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