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 $373.2B against $6.5B — 57.7× the size. Terex Corporation trades at the lower P/E: 28.8× against 35.2×. 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; Caterpillar Inc. yields more (1.69% vs 1.02%). Across the 23 metrics below, Terex Corporation leads on 12 and Caterpillar Inc. on 11.

Valuation

Metric CAT TEX Farm & Heavy Construction Machinery median
P/E 35.17 28.81 23.38
P/S 5.06 0.98 0.81
P/B 19.50 1.32 1.43
Price to free cash flow 38.70 19.04 25.31
EV/EBITDA 24.69 14.09 12.13
EV/Sales 5.58 1.32 1.20
Earnings yield 2.84% 3.47% 2.73%
Free cash flow yield 2.58% 5.25% 3.02%

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% 4.16%
Return on assets 11.24% 1.81% 1.45%
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%) —
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 1.69% 1.02% 1.45%
Payout ratio 0.33 0.09 0.08

Size

Metric CAT TEX Farm & Heavy Construction Machinery median
Market cap 373.15b 6.47b 772.81m

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