CNH Industrial N.V. (CNH) vs Deere & Company (DE)

CNH Industrial N.V. and Deere & Company are both Farm & Heavy Construction Machinery companies. Deere & Company is the larger, with a market value of $187.7B against $16.4B — 11.4× the size. Deere & Company trades at the lower P/E: 38.3× against 52.4×. Deere & Company grew revenue faster over the last twelve months: 7.99% against 0.64%. Deere & Company has the higher net margin (10.2% vs 1.71%) and the higher return on invested capital (4.93% vs 4.91%). Both pay a dividend; CNH Industrial N.V. yields more (2.73% vs 1.43%). Across the 23 metrics below, Deere & Company leads on 17 and CNH Industrial N.V. on 6.

Valuation

Metric CNH DE Farm & Heavy Construction Machinery median
P/E 52.36 38.25 23.38
P/S 0.89 3.88 0.81
P/B 2.08 6.65 1.43
Price to free cash flow 26.52 23.26 25.31
EV/EBITDA 12.76 20.52 12.13
EV/Sales 2.18 5.00 1.20
Earnings yield 1.91% 2.61% 2.73%
Free cash flow yield 3.77% 4.30% 3.02%

Profitability

Metric CNH DE Farm & Heavy Construction Machinery median
Gross margin 30.55% 36.59% 24.21%
Operating margin 13.52% 19.47% 4.47%
Net margin 1.71% 10.16% 1.49%
Free cash flow margin 3.36% 16.69% 2.15%
Return on equity 3.99% 18.33% 4.16%
Return on assets 0.72% 4.52% 1.45%
Return on invested capital 4.91% 4.93% 3.36%

Growth

Metric CNH DE Farm & Heavy Construction Machinery median
Revenue growth (TTM) 0.64% 7.99% 2.18%
EPS growth (last fiscal year) (58.59%) (27.79%) —
Revenue growth, 5-year CAGR (7.02%) 5.15% 7.34%
Net income growth, 5-year CAGR 0.00% 12.81% 0.00%

Health

Metric CNH DE Farm & Heavy Construction Machinery median
Debt to equity 3.33 2.28 0.67
Current ratio 12.23 2.10 1.98
Net debt to EBITDA 6.90 4.65 1.12

Dividend

Metric CNH DE Farm & Heavy Construction Machinery median
Dividend yield 2.73% 1.43% 1.45%
Payout ratio 0.23 0.14 0.08

Size

Metric CNH DE Farm & Heavy Construction Machinery median
Market cap 16.44b 187.72b 772.81m

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