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 $16.4B against $6.9B — 2.4× the size. Federal Signal Corporation trades at the lower P/E: 24.5× against 52.4×. 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 (2.73% vs 0.50%). 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 52.36 24.47 23.38
P/S 0.89 2.85 0.81
P/B 2.08 4.64 1.43
Price to free cash flow 26.52 20.60 25.31
EV/EBITDA 12.76 15.19 12.13
EV/Sales 2.18 3.01 1.20
Earnings yield 1.91% 4.09% 2.73%
Free cash flow yield 3.77% 4.85% 3.02%

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% 4.16%
Return on assets 0.72% 13.10% 1.45%
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% —
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 2.73% 0.50% 1.45%
Payout ratio 0.23 0.17 0.08

Size

Metric CNH FSS Farm & Heavy Construction Machinery median
Market cap 16.44b 6.88b 772.81m

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