Deere & Company (DE) vs Federal Signal Corporation (FSS)

Deere & Company and Federal Signal Corporation are both Farm & Heavy Construction Machinery companies. Deere & Company is the larger, with a market value of $187.7B against $6.9B — 27.3× the size. Federal Signal Corporation trades at the lower P/E: 24.5× against 38.3×. Federal Signal Corporation grew revenue faster over the last twelve months: 24.0% against 7.99%. Federal Signal Corporation has the higher net margin (11.7% vs 10.2%) and the higher return on invested capital (13.0% vs 4.93%). Both pay a dividend; Deere & Company yields more (1.43% vs 0.50%). Across the 23 metrics below, Federal Signal Corporation leads on 19 and Deere & Company on 4.

Valuation

Metric DE FSS Farm & Heavy Construction Machinery median
P/E 38.25 24.47 23.38
P/S 3.88 2.85 0.81
P/B 6.65 4.64 1.43
Price to free cash flow 23.26 20.60 25.31
EV/EBITDA 20.52 15.19 12.13
EV/Sales 5.00 3.01 1.20
Earnings yield 2.61% 4.09% 2.73%
Free cash flow yield 4.30% 4.85% 3.02%

Profitability

Metric DE FSS Farm & Heavy Construction Machinery median
Gross margin 36.59% 29.17% 24.21%
Operating margin 19.47% 16.15% 4.47%
Net margin 10.16% 11.66% 1.49%
Free cash flow margin 16.69% 13.86% 2.15%
Return on equity 18.33% 20.61% 4.16%
Return on assets 4.52% 13.10% 1.45%
Return on invested capital 4.93% 13.02% 3.36%

Growth

Metric DE FSS Farm & Heavy Construction Machinery median
Revenue growth (TTM) 7.99% 23.97% 2.18%
EPS growth (last fiscal year) (27.79%) 14.57% —
Revenue growth, 5-year CAGR 5.15% 14.03% 7.34%
Net income growth, 5-year CAGR 12.81% 20.72% 0.00%

Health

Metric DE FSS Farm & Heavy Construction Machinery median
Debt to equity 2.28 0.30 0.67
Current ratio 2.10 2.74 1.98
Net debt to EBITDA 4.65 1.19 1.12

Dividend

Metric DE FSS Farm & Heavy Construction Machinery median
Dividend yield 1.43% 0.50% 1.45%
Payout ratio 0.14 0.17 0.08

Size

Metric DE FSS Farm & Heavy Construction Machinery median
Market cap 187.72b 6.88b 772.81m

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