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 $178.9B against $6.8B — 26.1× the size. Federal Signal Corporation trades at the lower P/E: 23.0× against 36.9×. 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 (13.4% vs 4.93%). Both pay a dividend; Deere & Company yields more (0.97% vs 0.53%). 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 36.87 23.02 21.67
P/S 3.74 2.69 0.77
P/B 6.41 4.34 1.31
Price to free cash flow 22.42 18.75 20.59
EV/EBITDA 19.94 14.16 11.30
EV/Sales 4.86 2.82 1.11
Earnings yield 2.71% 4.34% 3.08%
Free cash flow yield 4.46% 5.33% 3.12%

Profitability

Metric DE FSS Farm & Heavy Construction Machinery median
Gross margin 36.59% 29.10% 22.91%
Operating margin 19.47% 16.20% 4.47%
Net margin 10.16% 11.65% 1.41%
Free cash flow margin 16.69% 14.33% 2.26%
Return on equity 18.33% 20.47% 3.99%
Return on assets 4.52% 13.52% 1.31%
Return on invested capital 4.93% 13.40% 4.09%

Growth

Metric DE FSS Farm & Heavy Construction Machinery median
Revenue growth (TTM) 7.99% 23.99% 1.81%
EPS growth (last fiscal year) (27.79%) 14.57% (27.79%)
Revenue growth, 5-year CAGR 5.15% 14.03% 6.63%
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 0.27 0.66
Current ratio 2.10 2.97 1.98
Net debt to EBITDA 4.65 1.19 1.12

Dividend

Metric DE FSS Farm & Heavy Construction Machinery median
Dividend yield 0.97% 0.53% 1.24%
Payout ratio 0.36 0.12 0.31

Size

Metric DE FSS Farm & Heavy Construction Machinery median
Market cap 178.85b 6.84b 836.63m

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