CNH Industrial N.V. (CNH) vs Terex Corporation (TEX)

CNH Industrial N.V. and Terex Corporation are both Farm & Heavy Construction Machinery companies. CNH Industrial N.V. is the larger, with a market value of $13.9B against $6.1B — 2.3× the size. Terex Corporation trades at the lower P/E: 27.3× against 45.1×. Terex Corporation grew revenue faster over the last twelve months: 40.1% against 0.64%. Terex Corporation has the higher net margin (2.64% vs 1.71%) and the lower return on invested capital (3.73% vs 4.91%). Both pay a dividend; Terex Corporation yields more (1.24% vs 0.89%). Across the 22 metrics below, Terex Corporation leads on 17 and CNH Industrial N.V. on 5.

Valuation

Metric CNH TEX Farm & Heavy Construction Machinery median
P/E 45.08 27.32 21.67
P/S 0.77 0.83 0.77
P/B 1.79 1.25 1.31
Price to free cash flow 22.84 14.72 20.59
EV/EBITDA 12.03 11.71 11.30
EV/Sales 2.06 1.12 1.11
Earnings yield 2.22% 3.66% 3.08%
Free cash flow yield 4.38% 6.80% 3.12%

Profitability

Metric CNH TEX Farm & Heavy Construction Machinery median
Gross margin 30.55% 17.12% 22.91%
Operating margin 13.52% 5.68% 4.47%
Net margin 1.71% 2.64% 1.41%
Free cash flow margin 3.36% 5.64% 2.26%
Return on equity 3.99% 5.68% 3.99%
Return on assets 0.72% 2.41% 1.31%
Return on invested capital 4.91% 3.73% 4.09%

Growth

Metric CNH TEX Farm & Heavy Construction Machinery median
Revenue growth (TTM) 0.64% 40.10% 1.81%
EPS growth (last fiscal year) (58.59%) (32.86%) (27.79%)
Revenue growth, 5-year CAGR (7.02%) 12.00% 6.63%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CNH TEX Farm & Heavy Construction Machinery median
Debt to equity 3.33 0.52 0.66
Current ratio 12.23 1.76 1.98
Net debt to EBITDA 6.90 2.86 1.12

Dividend

Metric CNH TEX Farm & Heavy Construction Machinery median
Dividend yield 0.89% 1.24% 1.24%
Payout ratio 0.40 0.34 0.31

Size

Metric CNH TEX Farm & Heavy Construction Machinery median
Market cap 13.92b 6.13b 836.63m

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