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

Federal Signal Corporation and Terex Corporation are both Farm & Heavy Construction Machinery companies. Federal Signal Corporation and Terex Corporation are of similar size ($6.9B and $6.5B). Federal Signal Corporation trades at the lower P/E: 24.5× against 28.8×. Terex Corporation grew revenue faster over the last twelve months: 29.2% against 24.0%. Federal Signal Corporation has the higher net margin (11.7% vs 2.23%) and the higher return on invested capital (13.0% vs 3.31%). Both pay a dividend; Terex Corporation yields more (1.02% vs 0.50%). 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 24.47 28.81 23.38
P/S 2.85 0.98 0.81
P/B 4.64 1.32 1.43
Price to free cash flow 20.60 19.04 25.31
EV/EBITDA 15.19 14.09 12.13
EV/Sales 3.01 1.32 1.20
Earnings yield 4.09% 3.47% 2.73%
Free cash flow yield 4.85% 5.25% 3.02%

Profitability

Metric FSS TEX Farm & Heavy Construction Machinery median
Gross margin 29.17% 17.16% 24.21%
Operating margin 16.15% 5.72% 4.47%
Net margin 11.66% 2.23% 1.49%
Free cash flow margin 13.86% 5.12% 2.15%
Return on equity 20.61% 4.33% 4.16%
Return on assets 13.10% 1.81% 1.45%
Return on invested capital 13.02% 3.31% 3.36%

Growth

Metric FSS TEX Farm & Heavy Construction Machinery median
Revenue growth (TTM) 23.97% 29.17% 2.18%
EPS growth (last fiscal year) 14.57% (32.86%) —
Revenue growth, 5-year CAGR 14.03% 12.00% 7.34%
Net income growth, 5-year CAGR 20.72% 0.00% 0.00%

Health

Metric FSS TEX Farm & Heavy Construction Machinery median
Debt to equity 0.30 0.55 0.67
Current ratio 2.74 1.82 1.98
Net debt to EBITDA 1.19 2.86 1.12

Dividend

Metric FSS TEX Farm & Heavy Construction Machinery median
Dividend yield 0.50% 1.02% 1.45%
Payout ratio 0.17 0.09 0.08

Size

Metric FSS TEX Farm & Heavy Construction Machinery median
Market cap 6.88b 6.47b 772.81m

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