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 $55.0B against $6.8B — 8.0× the size. PACCAR Inc. trades at the lower P/E: 19.9× against 23.0×. Federal Signal Corporation grew revenue faster over the last twelve months: 24.0% against −1.53%. Federal Signal Corporation has the higher net margin (11.7% vs 9.50%) and the higher return on invested capital (13.4% vs 9.47%). Both pay a dividend; PACCAR Inc. yields more (2.64% vs 0.53%). 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 23.02 19.89 21.67
P/S 2.69 1.89 0.77
P/B 4.34 2.63 1.31
Price to free cash flow 18.75 17.77 20.59
EV/EBITDA 14.16 12.48 11.30
EV/Sales 2.82 2.08 1.11
Earnings yield 4.34% 5.03% 3.08%
Free cash flow yield 5.33% 5.63% 3.12%

Profitability

Metric FSS PCAR Farm & Heavy Construction Machinery median
Gross margin 29.10% 20.15% 22.91%
Operating margin 16.20% 13.80% 4.47%
Net margin 11.65% 9.50% 1.41%
Free cash flow margin 14.33% 10.65% 2.26%
Return on equity 20.47% 13.71% 3.99%
Return on assets 13.52% 6.18% 1.31%
Return on invested capital 13.40% 9.47% 4.09%

Growth

Metric FSS PCAR Farm & Heavy Construction Machinery median
Revenue growth (TTM) 23.99% (1.53%) 1.81%
EPS growth (last fiscal year) 14.57% (42.91%) (27.79%)
Revenue growth, 5-year CAGR 14.03% 8.72% 6.63%
Net income growth, 5-year CAGR 20.72% 12.80% 0.00%

Health

Metric FSS PCAR Farm & Heavy Construction Machinery median
Debt to equity 0.27 0.71 0.66
Current ratio 2.97 3.22 1.98
Net debt to EBITDA 1.19 1.30 1.12

Dividend

Metric FSS PCAR Farm & Heavy Construction Machinery median
Dividend yield 0.53% 2.64% 1.24%
Payout ratio 0.12 0.53 0.31

Size

Metric FSS PCAR Farm & Heavy Construction Machinery median
Market cap 6.84b 55.02b 836.63m

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