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 — 8.5× the size. PACCAR Inc. trades at the lower P/E: 23.4× against 24.5×. 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 (3.35% vs 0.50%). 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 24.47 23.38 23.38
P/S 2.85 2.11 0.81
P/B 4.64 2.89 1.43
Price to free cash flow 20.60 15.93 25.31
EV/EBITDA 15.19 14.22 12.13
EV/Sales 3.01 2.32 1.20
Earnings yield 4.09% 4.28% 2.73%
Free cash flow yield 4.85% 6.28% 3.02%

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% 4.16%
Return on assets 13.10% 5.69% 1.45%
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%) —
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 0.50% 3.35% 1.45%
Payout ratio 0.17 0.14 0.08

Size

Metric FSS PCAR Farm & Heavy Construction Machinery median
Market cap 6.88b 58.25b 772.81m

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