Federal Signal Corporation (FSS) vs PACCAR Inc. (PCAR)

Federal Signal Corporation and PACCAR Inc. are both Farm & Heavy Construction Machinery companies. PACCAR Inc. is the larger, with a market value of $58.3B against $6.9B — 8.4× the size. PACCAR Inc. trades at the lower P/E: 23.3× against 24.0×. Federal Signal Corporation grew revenue faster over the last twelve months: 24.0% against −10.6%. Federal Signal Corporation has the higher net margin (11.7% vs 9.00%) and the higher return on invested capital (13.0% vs 8.85%). Both pay a dividend; PACCAR Inc. yields more (2.49% vs 0.52%). Across the 23 metrics below, Federal Signal Corporation leads on 13 and PACCAR Inc. on 10.

Valuation

Metric FSS PCAR Farm & Heavy Construction Machinery median
P/E 23.96 23.28 23.28
P/S 2.80 2.10 0.75
P/B 4.54 2.87 1.43
Price to free cash flow 20.18 15.86 22.25
EV/EBITDA 14.90 14.16 11.41
EV/Sales 2.96 2.31 1.14
Earnings yield 4.17% 4.30% 2.83%
Free cash flow yield 4.96% 6.31% 2.91%

Profitability

Metric FSS PCAR Farm & Heavy Construction Machinery median
Gross margin 29.17% 19.99% 24.21%
Operating margin 16.15% 13.33% 4.47%
Net margin 11.66% 9.00% 1.49%
Free cash flow margin 13.86% 13.24% 2.15%
Return on equity 20.61% 12.76% 3.99%
Return on assets 13.10% 5.69% 1.31%
Return on invested capital 13.02% 8.85% 3.36%

Growth

Metric FSS PCAR Farm & Heavy Construction Machinery median
Revenue growth (TTM) 23.97% (10.56%) 2.18%
EPS growth (last fiscal year) 14.57% (42.91%) (27.79%)
Revenue growth, 5-year CAGR 14.03% 8.72% 7.34%
Net income growth, 5-year CAGR 20.72% 12.80% 0.00%

Health

Metric FSS PCAR Farm & Heavy Construction Machinery median
Debt to equity 0.30 0.72 0.67
Current ratio 2.74 3.12 1.98
Net debt to EBITDA 1.19 1.30 1.12

Dividend

Metric FSS PCAR Farm & Heavy Construction Machinery median
Dividend yield 0.52% 2.49% 1.34%
Payout ratio 0.13 0.58 0.30

Size

Metric FSS PCAR Farm & Heavy Construction Machinery median
Market cap 6.93b 58.33b 808.87m

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