Caterpillar Inc. (CAT) vs Terex Corporation (TEX)

Caterpillar Inc. and Terex Corporation are both Farm & Heavy Construction Machinery companies. Caterpillar Inc. is the larger, with a market value of $338.2B against $6.0B — 56.2× the size. Terex Corporation trades at the lower P/E: 25.6× against 31.2×. Terex Corporation grew revenue faster over the last twelve months: 29.2% against 18.4%. Caterpillar Inc. has the higher net margin (14.5% vs 2.23%) and the higher return on invested capital (14.2% vs 3.31%). Both pay a dividend; Terex Corporation yields more (1.34% vs 0.84%). Across the 23 metrics below, Terex Corporation leads on 13 and Caterpillar Inc. on 10.

Valuation

Metric CAT TEX Farm & Heavy Construction Machinery median
P/E 31.23 25.59 23.28
P/S 4.49 0.87 0.75
P/B 17.32 1.17 1.43
Price to free cash flow 34.37 16.92 22.25
EV/EBITDA 22.18 12.93 11.41
EV/Sales 5.01 1.21 1.14
Earnings yield 3.20% 3.91% 2.83%
Free cash flow yield 2.91% 5.91% 2.91%

Profitability

Metric CAT TEX Farm & Heavy Construction Machinery median
Gross margin 34.34% 17.16% 24.21%
Operating margin 19.40% 5.72% 4.47%
Net margin 14.51% 2.23% 1.49%
Free cash flow margin 13.08% 5.12% 2.15%
Return on equity 56.99% 4.33% 3.99%
Return on assets 11.24% 1.81% 1.31%
Return on invested capital 14.15% 3.31% 3.36%

Growth

Metric CAT TEX Farm & Heavy Construction Machinery median
Revenue growth (TTM) 18.36% 29.17% 2.18%
EPS growth (last fiscal year) (14.69%) (32.86%) (27.79%)
Revenue growth, 5-year CAGR 10.12% 12.00% 7.34%
Net income growth, 5-year CAGR 24.27% 0.00% 0.00%

Health

Metric CAT TEX Farm & Heavy Construction Machinery median
Debt to equity 2.33 0.55 0.67
Current ratio 1.37 1.82 1.98
Net debt to EBITDA 2.26 2.86 1.12

Dividend

Metric CAT TEX Farm & Heavy Construction Machinery median
Dividend yield 0.84% 1.34% 1.34%
Payout ratio 0.27 0.35 0.30

Size

Metric CAT TEX Farm & Heavy Construction Machinery median
Market cap 338.16b 6.02b 808.87m

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