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 $338.2B against $14.8B — 22.9× the size. Caterpillar Inc. trades at the lower P/E: 31.2× against 46.6×. Caterpillar Inc. grew revenue faster over the last twelve months: 18.4% against 0.64%. Caterpillar Inc. has the higher net margin (14.5% vs 1.71%) and the higher return on invested capital (14.2% vs 4.91%). Both pay a dividend; CNH Industrial N.V. yields more (0.86% vs 0.84%). Across the 23 metrics below, Caterpillar Inc. leads on 15 and CNH Industrial N.V. on 8.

Valuation

Metric CAT CNH Farm & Heavy Construction Machinery median
P/E 31.23 46.56 23.28
P/S 4.49 0.79 0.75
P/B 17.32 1.85 1.43
Price to free cash flow 34.37 23.58 22.25
EV/EBITDA 22.18 12.18 11.41
EV/Sales 5.01 2.08 1.14
Earnings yield 3.20% 2.15% 2.83%
Free cash flow yield 2.91% 4.24% 2.91%

Profitability

Metric CAT CNH Farm & Heavy Construction Machinery median
Gross margin 34.34% 30.55% 24.21%
Operating margin 19.40% 13.52% 4.47%
Net margin 14.51% 1.71% 1.49%
Free cash flow margin 13.08% 3.36% 2.15%
Return on equity 56.99% 3.99% 3.99%
Return on assets 11.24% 0.72% 1.31%
Return on invested capital 14.15% 4.91% 3.36%

Growth

Metric CAT CNH Farm & Heavy Construction Machinery median
Revenue growth (TTM) 18.36% 0.64% 2.18%
EPS growth (last fiscal year) (14.69%) (58.59%) (27.79%)
Revenue growth, 5-year CAGR 10.12% (7.02%) 7.34%
Net income growth, 5-year CAGR 24.27% 0.00% 0.00%

Health

Metric CAT CNH Farm & Heavy Construction Machinery median
Debt to equity 2.33 3.33 0.67
Current ratio 1.37 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 0.84% 0.86% 1.34%
Payout ratio 0.27 0.40 0.30

Size

Metric CAT CNH Farm & Heavy Construction Machinery median
Market cap 338.16b 14.79b 808.87m

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