Deere & Company (DE) vs Terex Corporation (TEX)

Deere & Company and Terex Corporation are both Farm & Heavy Construction Machinery companies. Deere & Company is the larger, with a market value of $175.4B against $6.0B — 29.1× the size. Terex Corporation trades at the lower P/E: 25.6× against 35.6×. Terex Corporation grew revenue faster over the last twelve months: 29.2% against 7.99%. Deere & Company has the higher net margin (10.2% vs 2.23%) and the higher return on invested capital (4.93% vs 3.31%). Both pay a dividend; Terex Corporation yields more (1.34% vs 1.01%). Across the 23 metrics below, Terex Corporation leads on 13 and Deere & Company on 10.

Valuation

Metric DE TEX Farm & Heavy Construction Machinery median
P/E 35.56 25.59 23.28
P/S 3.61 0.87 0.75
P/B 6.19 1.17 1.43
Price to free cash flow 21.62 16.92 22.25
EV/EBITDA 19.40 12.93 11.41
EV/Sales 4.73 1.21 1.14
Earnings yield 2.81% 3.91% 2.83%
Free cash flow yield 4.62% 5.91% 2.91%

Profitability

Metric DE TEX Farm & Heavy Construction Machinery median
Gross margin 36.59% 17.16% 24.21%
Operating margin 19.47% 5.72% 4.47%
Net margin 10.16% 2.23% 1.49%
Free cash flow margin 16.69% 5.12% 2.15%
Return on equity 18.33% 4.33% 3.99%
Return on assets 4.52% 1.81% 1.31%
Return on invested capital 4.93% 3.31% 3.36%

Growth

Metric DE TEX Farm & Heavy Construction Machinery median
Revenue growth (TTM) 7.99% 29.17% 2.18%
EPS growth (last fiscal year) (27.79%) (32.86%) (27.79%)
Revenue growth, 5-year CAGR 5.15% 12.00% 7.34%
Net income growth, 5-year CAGR 12.81% 0.00% 0.00%

Health

Metric DE TEX Farm & Heavy Construction Machinery median
Debt to equity 2.28 0.55 0.67
Current ratio 2.10 1.82 1.98
Net debt to EBITDA 4.65 2.86 1.12

Dividend

Metric DE TEX Farm & Heavy Construction Machinery median
Dividend yield 1.01% 1.34% 1.34%
Payout ratio 0.36 0.35 0.30

Size

Metric DE TEX Farm & Heavy Construction Machinery median
Market cap 175.44b 6.02b 808.87m

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