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 $16.4B against $6.5B — 2.5× the size. Terex Corporation trades at the lower P/E: 28.8× against 52.4×. Terex Corporation grew revenue faster over the last twelve months: 29.2% against 0.64%. Terex Corporation has the higher net margin (2.23% vs 1.71%) and the lower return on invested capital (3.31% vs 4.91%). Both pay a dividend; CNH Industrial N.V. yields more (2.73% vs 1.02%). Across the 22 metrics below, Terex Corporation leads on 15 and CNH Industrial N.V. on 7.

Valuation

Metric CNH TEX Farm & Heavy Construction Machinery median
P/E 52.36 28.81 23.38
P/S 0.89 0.98 0.81
P/B 2.08 1.32 1.43
Price to free cash flow 26.52 19.04 25.31
EV/EBITDA 12.76 14.09 12.13
EV/Sales 2.18 1.32 1.20
Earnings yield 1.91% 3.47% 2.73%
Free cash flow yield 3.77% 5.25% 3.02%

Profitability

Metric CNH TEX Farm & Heavy Construction Machinery median
Gross margin 30.55% 17.16% 24.21%
Operating margin 13.52% 5.72% 4.47%
Net margin 1.71% 2.23% 1.49%
Free cash flow margin 3.36% 5.12% 2.15%
Return on equity 3.99% 4.33% 4.16%
Return on assets 0.72% 1.81% 1.45%
Return on invested capital 4.91% 3.31% 3.36%

Growth

Metric CNH TEX Farm & Heavy Construction Machinery median
Revenue growth (TTM) 0.64% 29.17% 2.18%
EPS growth (last fiscal year) (58.59%) (32.86%) —
Revenue growth, 5-year CAGR (7.02%) 12.00% 7.34%
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 0.55 0.67
Current ratio 12.23 1.82 1.98
Net debt to EBITDA 6.90 2.86 1.12

Dividend

Metric CNH TEX Farm & Heavy Construction Machinery median
Dividend yield 2.73% 1.02% 1.45%
Payout ratio 0.23 0.09 0.08

Size

Metric CNH TEX Farm & Heavy Construction Machinery median
Market cap 16.44b 6.47b 772.81m

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