Caterpillar Inc. (CAT) vs Deere & Company (DE)

Caterpillar Inc. and Deere & Company are both Farm & Heavy Construction Machinery companies. Caterpillar Inc. is the larger, with a market value of $254.5B against $178.9B — 1.4× the size. Caterpillar Inc. trades at the lower P/E: 21.7× against 36.9×. Caterpillar Inc. grew revenue faster over the last twelve months: 20.3% against 7.99%. Caterpillar Inc. has the higher net margin (15.2% vs 10.2%) and the higher return on invested capital (15.2% vs 4.93%). Both pay a dividend; Caterpillar Inc. yields more (1.13% vs 0.97%). Across the 23 metrics below, Caterpillar Inc. leads on 17 and Deere & Company on 6.

Valuation

Metric CAT DE Farm & Heavy Construction Machinery median
P/E 21.67 36.87 21.67
P/S 3.28 3.74 0.77
P/B 11.86 6.41 1.31
Price to free cash flow 24.14 22.42 20.59
EV/EBITDA 17.31 19.94 11.30
EV/Sales 3.76 4.86 1.11
Earnings yield 4.61% 2.71% 3.08%
Free cash flow yield 4.14% 4.46% 3.12%

Profitability

Metric CAT DE Farm & Heavy Construction Machinery median
Gross margin 34.78% 36.59% 22.91%
Operating margin 20.18% 19.47% 4.47%
Net margin 15.21% 10.16% 1.41%
Free cash flow margin 13.57% 16.69% 2.26%
Return on equity 56.15% 18.33% 3.99%
Return on assets 11.80% 4.52% 1.31%
Return on invested capital 15.16% 4.93% 4.09%

Growth

Metric CAT DE Farm & Heavy Construction Machinery median
Revenue growth (TTM) 20.26% 7.99% 1.81%
EPS growth (last fiscal year) (14.69%) (27.79%) (27.79%)
Revenue growth, 5-year CAGR 10.12% 5.15% 6.63%
Net income growth, 5-year CAGR 24.27% 12.81% 0.00%

Health

Metric CAT DE Farm & Heavy Construction Machinery median
Debt to equity 2.10 2.28 0.66
Current ratio 1.42 2.10 1.98
Net debt to EBITDA 2.26 4.65 1.12

Dividend

Metric CAT DE Farm & Heavy Construction Machinery median
Dividend yield 1.13% 0.97% 1.24%
Payout ratio 0.25 0.36 0.31

Size

Metric CAT DE Farm & Heavy Construction Machinery median
Market cap 254.49b 178.85b 836.63m

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