Federal Signal Corporation (FSS) vs Terex Corporation (TEX)

Federal Signal Corporation and Terex Corporation are both Farm & Heavy Construction Machinery companies. Federal Signal Corporation is the larger, with a market value of $6.8B against $6.1B — 1.1× the size. Federal Signal Corporation trades at the lower P/E: 23.0× against 27.3×. Terex Corporation grew revenue faster over the last twelve months: 40.1% against 24.0%. Federal Signal Corporation has the higher net margin (11.7% vs 2.64%) and the higher return on invested capital (13.4% vs 3.73%). Both pay a dividend; Terex Corporation yields more (1.24% vs 0.53%). Across the 23 metrics below, Federal Signal Corporation leads on 15 and Terex Corporation on 8.

Valuation

Metric FSS TEX Farm & Heavy Construction Machinery median
P/E 23.02 27.32 21.67
P/S 2.69 0.83 0.77
P/B 4.34 1.25 1.31
Price to free cash flow 18.75 14.72 20.59
EV/EBITDA 14.16 11.71 11.30
EV/Sales 2.82 1.12 1.11
Earnings yield 4.34% 3.66% 3.08%
Free cash flow yield 5.33% 6.80% 3.12%

Profitability

Metric FSS TEX Farm & Heavy Construction Machinery median
Gross margin 29.10% 17.12% 22.91%
Operating margin 16.20% 5.68% 4.47%
Net margin 11.65% 2.64% 1.41%
Free cash flow margin 14.33% 5.64% 2.26%
Return on equity 20.47% 5.68% 3.99%
Return on assets 13.52% 2.41% 1.31%
Return on invested capital 13.40% 3.73% 4.09%

Growth

Metric FSS TEX Farm & Heavy Construction Machinery median
Revenue growth (TTM) 23.99% 40.10% 1.81%
EPS growth (last fiscal year) 14.57% (32.86%) (27.79%)
Revenue growth, 5-year CAGR 14.03% 12.00% 6.63%
Net income growth, 5-year CAGR 20.72% 0.00% 0.00%

Health

Metric FSS TEX Farm & Heavy Construction Machinery median
Debt to equity 0.27 0.52 0.66
Current ratio 2.97 1.76 1.98
Net debt to EBITDA 1.19 2.86 1.12

Dividend

Metric FSS TEX Farm & Heavy Construction Machinery median
Dividend yield 0.53% 1.24% 1.24%
Payout ratio 0.12 0.34 0.31

Size

Metric FSS TEX Farm & Heavy Construction Machinery median
Market cap 6.84b 6.13b 836.63m

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