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 $338.2B against $175.4B — 1.9× the size. Caterpillar Inc. trades at the lower P/E: 31.2× against 35.6×. 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; Deere & Company yields more (1.01% vs 0.84%). Across the 23 metrics below, Deere & Company leads on 12 and Caterpillar Inc. on 11.

Valuation

Metric CAT DE Farm & Heavy Construction Machinery median
P/E 31.23 35.56 23.28
P/S 4.49 3.61 0.75
P/B 17.32 6.19 1.43
Price to free cash flow 34.37 21.62 22.25
EV/EBITDA 22.18 19.40 11.41
EV/Sales 5.01 4.73 1.14
Earnings yield 3.20% 2.81% 2.83%
Free cash flow yield 2.91% 4.62% 2.91%

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% 3.99%
Return on assets 11.24% 4.52% 1.31%
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%) (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 0.84% 1.01% 1.34%
Payout ratio 0.27 0.36 0.30

Size

Metric CAT DE Farm & Heavy Construction Machinery median
Market cap 338.16b 175.44b 808.87m

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