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 $178.9B against $6.1B — 29.2× the size. Terex Corporation trades at the lower P/E: 27.3× against 36.9×. Terex Corporation grew revenue faster over the last twelve months: 40.1% against 7.99%. Deere & Company has the higher net margin (10.2% vs 2.64%) and the higher return on invested capital (4.93% vs 3.73%). Both pay a dividend; Terex Corporation yields more (1.24% vs 0.97%). 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 36.87 27.32 21.67
P/S 3.74 0.83 0.77
P/B 6.41 1.25 1.31
Price to free cash flow 22.42 14.72 20.59
EV/EBITDA 19.94 11.71 11.30
EV/Sales 4.86 1.12 1.11
Earnings yield 2.71% 3.66% 3.08%
Free cash flow yield 4.46% 6.80% 3.12%

Profitability

Metric DE TEX Farm & Heavy Construction Machinery median
Gross margin 36.59% 17.12% 22.91%
Operating margin 19.47% 5.68% 4.47%
Net margin 10.16% 2.64% 1.41%
Free cash flow margin 16.69% 5.64% 2.26%
Return on equity 18.33% 5.68% 3.99%
Return on assets 4.52% 2.41% 1.31%
Return on invested capital 4.93% 3.73% 4.09%

Growth

Metric DE TEX Farm & Heavy Construction Machinery median
Revenue growth (TTM) 7.99% 40.10% 1.81%
EPS growth (last fiscal year) (27.79%) (32.86%) (27.79%)
Revenue growth, 5-year CAGR 5.15% 12.00% 6.63%
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 0.52 0.66
Current ratio 2.10 1.76 1.98
Net debt to EBITDA 4.65 2.86 1.12

Dividend

Metric DE TEX Farm & Heavy Construction Machinery median
Dividend yield 0.97% 1.24% 1.24%
Payout ratio 0.36 0.34 0.31

Size

Metric DE TEX Farm & Heavy Construction Machinery median
Market cap 178.85b 6.13b 836.63m

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