CNH Industrial N.V. (CNH) vs Federal Signal Corporation (FSS)

CNH Industrial N.V. and Federal Signal Corporation are both Farm & Heavy Construction Machinery companies. CNH Industrial N.V. is the larger, with a market value of $13.9B against $6.8B — 2.0× the size. Federal Signal Corporation trades at the lower P/E: 23.0× against 45.1×. Federal Signal Corporation grew revenue faster over the last twelve months: 24.0% against 0.64%. Federal Signal Corporation has the higher net margin (11.7% vs 1.71%) and the higher return on invested capital (13.4% vs 4.91%). Both pay a dividend; CNH Industrial N.V. yields more (0.89% vs 0.53%). Across the 23 metrics below, Federal Signal Corporation leads on 16 and CNH Industrial N.V. on 7.

Valuation

Metric CNH FSS Farm & Heavy Construction Machinery median
P/E 45.08 23.02 21.67
P/S 0.77 2.69 0.77
P/B 1.79 4.34 1.31
Price to free cash flow 22.84 18.75 20.59
EV/EBITDA 12.03 14.16 11.30
EV/Sales 2.06 2.82 1.11
Earnings yield 2.22% 4.34% 3.08%
Free cash flow yield 4.38% 5.33% 3.12%

Profitability

Metric CNH FSS Farm & Heavy Construction Machinery median
Gross margin 30.55% 29.10% 22.91%
Operating margin 13.52% 16.20% 4.47%
Net margin 1.71% 11.65% 1.41%
Free cash flow margin 3.36% 14.33% 2.26%
Return on equity 3.99% 20.47% 3.99%
Return on assets 0.72% 13.52% 1.31%
Return on invested capital 4.91% 13.40% 4.09%

Growth

Metric CNH FSS Farm & Heavy Construction Machinery median
Revenue growth (TTM) 0.64% 23.99% 1.81%
EPS growth (last fiscal year) (58.59%) 14.57% (27.79%)
Revenue growth, 5-year CAGR (7.02%) 14.03% 6.63%
Net income growth, 5-year CAGR 0.00% 20.72% 0.00%

Health

Metric CNH FSS Farm & Heavy Construction Machinery median
Debt to equity 3.33 0.27 0.66
Current ratio 12.23 2.97 1.98
Net debt to EBITDA 6.90 1.19 1.12

Dividend

Metric CNH FSS Farm & Heavy Construction Machinery median
Dividend yield 0.89% 0.53% 1.24%
Payout ratio 0.40 0.12 0.31

Size

Metric CNH FSS Farm & Heavy Construction Machinery median
Market cap 13.92b 6.84b 836.63m

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