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 $373.2B against $187.7B — 2.0× the size. Caterpillar Inc. trades at the lower P/E: 35.2× against 38.3×. Caterpillar Inc. grew revenue faster over the last twelve months: 18.4% against 7.99%. Caterpillar Inc. has the higher net margin (14.5% vs 10.2%) and the higher return on invested capital (14.2% vs 4.93%). Both pay a dividend; Caterpillar Inc. yields more (1.69% vs 1.43%). Across the 23 metrics below, Caterpillar Inc. leads on 12 and Deere & Company on 11.

Valuation

Metric CAT DE Farm & Heavy Construction Machinery median
P/E 35.17 38.25 23.38
P/S 5.06 3.88 0.81
P/B 19.50 6.65 1.43
Price to free cash flow 38.70 23.26 25.31
EV/EBITDA 24.69 20.52 12.13
EV/Sales 5.58 5.00 1.20
Earnings yield 2.84% 2.61% 2.73%
Free cash flow yield 2.58% 4.30% 3.02%

Profitability

Metric CAT DE Farm & Heavy Construction Machinery median
Gross margin 34.34% 36.59% 24.21%
Operating margin 19.40% 19.47% 4.47%
Net margin 14.51% 10.16% 1.49%
Free cash flow margin 13.08% 16.69% 2.15%
Return on equity 56.99% 18.33% 4.16%
Return on assets 11.24% 4.52% 1.45%
Return on invested capital 14.15% 4.93% 3.36%

Growth

Metric CAT DE Farm & Heavy Construction Machinery median
Revenue growth (TTM) 18.36% 7.99% 2.18%
EPS growth (last fiscal year) (14.69%) (27.79%) —
Revenue growth, 5-year CAGR 10.12% 5.15% 7.34%
Net income growth, 5-year CAGR 24.27% 12.81% 0.00%

Health

Metric CAT DE Farm & Heavy Construction Machinery median
Debt to equity 2.33 2.28 0.67
Current ratio 1.37 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 1.69% 1.43% 1.45%
Payout ratio 0.33 0.14 0.08

Size

Metric CAT DE Farm & Heavy Construction Machinery median
Market cap 373.15b 187.72b 772.81m

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