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 $338.2B against $58.3B — 5.8× the size. PACCAR Inc. trades at the lower P/E: 23.3× against 31.2×. 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 (2.49% vs 1.07%). 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 31.23 23.28 23.28
P/S 4.49 2.10 0.75
P/B 17.32 2.87 1.43
Price to free cash flow 34.37 15.86 22.25
EV/EBITDA 22.18 14.16 11.41
EV/Sales 5.01 2.31 1.14
Earnings yield 3.20% 4.30% 2.83%
Free cash flow yield 2.91% 6.31% 2.91%

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% 3.99%
Return on assets 11.24% 5.69% 1.31%
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%) (27.79%)
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 1.07% 2.49% 1.34%
Payout ratio 0.34 0.58 0.30

Size

Metric CAT PCAR Farm & Heavy Construction Machinery median
Market cap 338.16b 58.33b 808.87m

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