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 $373.2B against $58.3B — 6.4× the size. PACCAR Inc. trades at the lower P/E: 23.4× against 35.2×. Caterpillar Inc. grew revenue faster over the last twelve months: 18.4% against −10.6%. Caterpillar Inc. has the higher net margin (14.5% vs 9.00%) and the higher return on invested capital (14.2% vs 8.85%). Both pay a dividend; PACCAR Inc. yields more (3.35% vs 1.69%). Across the 23 metrics below, PACCAR Inc. leads on 13 and Caterpillar Inc. on 10.

Valuation

Metric CAT PCAR Farm & Heavy Construction Machinery median
P/E 35.17 23.38 23.38
P/S 5.06 2.11 0.81
P/B 19.50 2.89 1.43
Price to free cash flow 38.70 15.93 25.31
EV/EBITDA 24.69 14.22 12.13
EV/Sales 5.58 2.32 1.20
Earnings yield 2.84% 4.28% 2.73%
Free cash flow yield 2.58% 6.28% 3.02%

Profitability

Metric CAT PCAR Farm & Heavy Construction Machinery median
Gross margin 34.34% 19.99% 24.21%
Operating margin 19.40% 13.33% 4.47%
Net margin 14.51% 9.00% 1.49%
Free cash flow margin 13.08% 13.24% 2.15%
Return on equity 56.99% 12.76% 4.16%
Return on assets 11.24% 5.69% 1.45%
Return on invested capital 14.15% 8.85% 3.36%

Growth

Metric CAT PCAR Farm & Heavy Construction Machinery median
Revenue growth (TTM) 18.36% (10.56%) 2.18%
EPS growth (last fiscal year) (14.69%) (42.91%) —
Revenue growth, 5-year CAGR 10.12% 8.72% 7.34%
Net income growth, 5-year CAGR 24.27% 12.80% 0.00%

Health

Metric CAT PCAR Farm & Heavy Construction Machinery median
Debt to equity 2.33 0.72 0.67
Current ratio 1.37 3.12 1.98
Net debt to EBITDA 2.26 1.30 1.12

Dividend

Metric CAT PCAR Farm & Heavy Construction Machinery median
Dividend yield 1.69% 3.35% 1.45%
Payout ratio 0.33 0.14 0.08

Size

Metric CAT PCAR Farm & Heavy Construction Machinery median
Market cap 373.15b 58.25b 772.81m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack