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 $254.5B against $6.1B — 41.5× the size. Caterpillar Inc. trades at the lower P/E: 21.7× against 27.3×. Terex Corporation grew revenue faster over the last twelve months: 40.1% against 20.3%. Caterpillar Inc. has the higher net margin (15.2% vs 2.64%) and the higher return on invested capital (15.2% vs 3.73%). Both pay a dividend; Terex Corporation yields more (1.24% vs 1.13%). Across the 23 metrics below, Caterpillar Inc. leads on 12 and Terex Corporation on 11.

Valuation

Metric CAT TEX Farm & Heavy Construction Machinery median
P/E 21.67 27.32 21.67
P/S 3.28 0.83 0.77
P/B 11.86 1.25 1.31
Price to free cash flow 24.14 14.72 20.59
EV/EBITDA 17.31 11.71 11.30
EV/Sales 3.76 1.12 1.11
Earnings yield 4.61% 3.66% 3.08%
Free cash flow yield 4.14% 6.80% 3.12%

Profitability

Metric CAT TEX Farm & Heavy Construction Machinery median
Gross margin 34.78% 17.12% 22.91%
Operating margin 20.18% 5.68% 4.47%
Net margin 15.21% 2.64% 1.41%
Free cash flow margin 13.57% 5.64% 2.26%
Return on equity 56.15% 5.68% 3.99%
Return on assets 11.80% 2.41% 1.31%
Return on invested capital 15.16% 3.73% 4.09%

Growth

Metric CAT TEX Farm & Heavy Construction Machinery median
Revenue growth (TTM) 20.26% 40.10% 1.81%
EPS growth (last fiscal year) (14.69%) (32.86%) (27.79%)
Revenue growth, 5-year CAGR 10.12% 12.00% 6.63%
Net income growth, 5-year CAGR 24.27% 0.00% 0.00%

Health

Metric CAT TEX Farm & Heavy Construction Machinery median
Debt to equity 2.10 0.52 0.66
Current ratio 1.42 1.76 1.98
Net debt to EBITDA 2.26 2.86 1.12

Dividend

Metric CAT TEX Farm & Heavy Construction Machinery median
Dividend yield 1.13% 1.24% 1.24%
Payout ratio 0.25 0.34 0.31

Size

Metric CAT TEX Farm & Heavy Construction Machinery median
Market cap 254.49b 6.13b 836.63m

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