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 $178.9B against $13.9B — 12.8× the size. Deere & Company trades at the lower P/E: 36.9× against 45.1×. 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; Deere & Company yields more (0.97% vs 0.89%). Across the 23 metrics below, Deere & Company leads on 18 and CNH Industrial N.V. on 5.

Valuation

Metric CNH DE Farm & Heavy Construction Machinery median
P/E 45.08 36.87 21.67
P/S 0.77 3.74 0.77
P/B 1.79 6.41 1.31
Price to free cash flow 22.84 22.42 20.59
EV/EBITDA 12.03 19.94 11.30
EV/Sales 2.06 4.86 1.11
Earnings yield 2.22% 2.71% 3.08%
Free cash flow yield 4.38% 4.46% 3.12%

Profitability

Metric CNH DE Farm & Heavy Construction Machinery median
Gross margin 30.55% 36.59% 22.91%
Operating margin 13.52% 19.47% 4.47%
Net margin 1.71% 10.16% 1.41%
Free cash flow margin 3.36% 16.69% 2.26%
Return on equity 3.99% 18.33% 3.99%
Return on assets 0.72% 4.52% 1.31%
Return on invested capital 4.91% 4.93% 4.09%

Growth

Metric CNH DE Farm & Heavy Construction Machinery median
Revenue growth (TTM) 0.64% 7.99% 1.81%
EPS growth (last fiscal year) (58.59%) (27.79%) (27.79%)
Revenue growth, 5-year CAGR (7.02%) 5.15% 6.63%
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 0.66
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 0.89% 0.97% 1.24%
Payout ratio 0.40 0.36 0.31

Size

Metric CNH DE Farm & Heavy Construction Machinery median
Market cap 13.92b 178.85b 836.63m

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