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 $14.8B against $6.9B — 2.1× the size. Federal Signal Corporation trades at the lower P/E: 24.0× against 46.6×. 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 (13.0% vs 4.91%). Both pay a dividend; CNH Industrial N.V. yields more (0.86% vs 0.52%). 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 46.56 23.96 23.28
P/S 0.79 2.80 0.75
P/B 1.85 4.54 1.43
Price to free cash flow 23.58 20.18 22.25
EV/EBITDA 12.18 14.90 11.41
EV/Sales 2.08 2.96 1.14
Earnings yield 2.15% 4.17% 2.83%
Free cash flow yield 4.24% 4.96% 2.91%

Profitability

Metric CNH FSS Farm & Heavy Construction Machinery median
Gross margin 30.55% 29.17% 24.21%
Operating margin 13.52% 16.15% 4.47%
Net margin 1.71% 11.66% 1.49%
Free cash flow margin 3.36% 13.86% 2.15%
Return on equity 3.99% 20.61% 3.99%
Return on assets 0.72% 13.10% 1.31%
Return on invested capital 4.91% 13.02% 3.36%

Growth

Metric CNH FSS Farm & Heavy Construction Machinery median
Revenue growth (TTM) 0.64% 23.97% 2.18%
EPS growth (last fiscal year) (58.59%) 14.57% (27.79%)
Revenue growth, 5-year CAGR (7.02%) 14.03% 7.34%
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 0.30 0.67
Current ratio 12.23 2.74 1.98
Net debt to EBITDA 6.90 1.19 1.12

Dividend

Metric CNH FSS Farm & Heavy Construction Machinery median
Dividend yield 0.86% 0.52% 1.34%
Payout ratio 0.40 0.13 0.30

Size

Metric CNH FSS Farm & Heavy Construction Machinery median
Market cap 14.79b 6.93b 808.87m

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