Caterpillar Inc. (CAT) vs PACCAR Inc. (PCAR)

Caterpillar Inc. and PACCAR Inc. are both Farm & Heavy Construction Machinery companies. Caterpillar Inc. is the larger, with a market value of $254.5B against $55.0B — 4.6× the size. PACCAR Inc. trades at the lower P/E: 19.9× against 21.7×. Caterpillar Inc. grew revenue faster over the last twelve months: 20.3% against −1.53%. Caterpillar Inc. has the higher net margin (15.2% vs 9.50%) and the higher return on invested capital (15.2% vs 9.47%). Both pay a dividend; PACCAR Inc. yields more (2.64% vs 1.13%). Across the 23 metrics below, PACCAR Inc. leads on 12 and Caterpillar Inc. on 11.

Valuation

Metric CAT PCAR Farm & Heavy Construction Machinery median
P/E 21.67 19.89 21.67
P/S 3.28 1.89 0.77
P/B 11.86 2.63 1.31
Price to free cash flow 24.14 17.77 20.59
EV/EBITDA 17.31 12.48 11.30
EV/Sales 3.76 2.08 1.11
Earnings yield 4.61% 5.03% 3.08%
Free cash flow yield 4.14% 5.63% 3.12%

Profitability

Metric CAT PCAR Farm & Heavy Construction Machinery median
Gross margin 34.78% 20.15% 22.91%
Operating margin 20.18% 13.80% 4.47%
Net margin 15.21% 9.50% 1.41%
Free cash flow margin 13.57% 10.65% 2.26%
Return on equity 56.15% 13.71% 3.99%
Return on assets 11.80% 6.18% 1.31%
Return on invested capital 15.16% 9.47% 4.09%

Growth

Metric CAT PCAR Farm & Heavy Construction Machinery median
Revenue growth (TTM) 20.26% (1.53%) 1.81%
EPS growth (last fiscal year) (14.69%) (42.91%) (27.79%)
Revenue growth, 5-year CAGR 10.12% 8.72% 6.63%
Net income growth, 5-year CAGR 24.27% 12.80% 0.00%

Health

Metric CAT PCAR Farm & Heavy Construction Machinery median
Debt to equity 2.10 0.71 0.66
Current ratio 1.42 3.22 1.98
Net debt to EBITDA 2.26 1.30 1.12

Dividend

Metric CAT PCAR Farm & Heavy Construction Machinery median
Dividend yield 1.13% 2.64% 1.24%
Payout ratio 0.25 0.53 0.31

Size

Metric CAT PCAR Farm & Heavy Construction Machinery median
Market cap 254.49b 55.02b 836.63m

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