CNH Industrial N.V. (CNH) vs PACCAR Inc. (PCAR)

CNH Industrial N.V. and PACCAR Inc. are both Farm & Heavy Construction Machinery companies. PACCAR Inc. is the larger, with a market value of $58.3B against $14.8B — 3.9× the size. PACCAR Inc. trades at the lower P/E: 23.3× against 46.6×. CNH Industrial N.V. grew revenue faster over the last twelve months: 0.64% against −10.6%. PACCAR Inc. has the higher net margin (9.00% vs 1.71%) and the higher return on invested capital (8.85% vs 4.91%). Both pay a dividend; PACCAR Inc. yields more (2.49% vs 0.86%). Across the 23 metrics below, PACCAR Inc. leads on 15 and CNH Industrial N.V. on 8.

Valuation

Metric CNH PCAR Farm & Heavy Construction Machinery median
P/E 46.56 23.28 23.28
P/S 0.79 2.10 0.75
P/B 1.85 2.87 1.43
Price to free cash flow 23.58 15.86 22.25
EV/EBITDA 12.18 14.16 11.41
EV/Sales 2.08 2.31 1.14
Earnings yield 2.15% 4.30% 2.83%
Free cash flow yield 4.24% 6.31% 2.91%

Profitability

Metric CNH PCAR Farm & Heavy Construction Machinery median
Gross margin 30.55% 19.99% 24.21%
Operating margin 13.52% 13.33% 4.47%
Net margin 1.71% 9.00% 1.49%
Free cash flow margin 3.36% 13.24% 2.15%
Return on equity 3.99% 12.76% 3.99%
Return on assets 0.72% 5.69% 1.31%
Return on invested capital 4.91% 8.85% 3.36%

Growth

Metric CNH PCAR Farm & Heavy Construction Machinery median
Revenue growth (TTM) 0.64% (10.56%) 2.18%
EPS growth (last fiscal year) (58.59%) (42.91%) (27.79%)
Revenue growth, 5-year CAGR (7.02%) 8.72% 7.34%
Net income growth, 5-year CAGR 0.00% 12.80% 0.00%

Health

Metric CNH PCAR Farm & Heavy Construction Machinery median
Debt to equity 3.33 0.72 0.67
Current ratio 12.23 3.12 1.98
Net debt to EBITDA 6.90 1.30 1.12

Dividend

Metric CNH PCAR Farm & Heavy Construction Machinery median
Dividend yield 0.86% 2.49% 1.34%
Payout ratio 0.40 0.58 0.30

Size

Metric CNH PCAR Farm & Heavy Construction Machinery median
Market cap 14.79b 58.33b 808.87m

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