PACCAR Inc. (PCAR) vs Terex Corporation (TEX)

PACCAR Inc. and Terex Corporation are both Farm & Heavy Construction Machinery companies. PACCAR Inc. is the larger, with a market value of $55.0B against $6.1B — 9.0× the size. PACCAR Inc. trades at the lower P/E: 19.9× against 27.3×. Terex Corporation grew revenue faster over the last twelve months: 40.1% against −1.53%. PACCAR Inc. has the higher net margin (9.50% vs 2.64%) and the higher return on invested capital (9.47% vs 3.73%). Both pay a dividend; PACCAR Inc. yields more (2.64% vs 1.24%). Across the 23 metrics below, PACCAR Inc. leads on 13 and Terex Corporation on 10.

Valuation

Metric PCAR TEX Farm & Heavy Construction Machinery median
P/E 19.89 27.32 21.67
P/S 1.89 0.83 0.77
P/B 2.63 1.25 1.31
Price to free cash flow 17.77 14.72 20.59
EV/EBITDA 12.48 11.71 11.30
EV/Sales 2.08 1.12 1.11
Earnings yield 5.03% 3.66% 3.08%
Free cash flow yield 5.63% 6.80% 3.12%

Profitability

Metric PCAR TEX Farm & Heavy Construction Machinery median
Gross margin 20.15% 17.12% 22.91%
Operating margin 13.80% 5.68% 4.47%
Net margin 9.50% 2.64% 1.41%
Free cash flow margin 10.65% 5.64% 2.26%
Return on equity 13.71% 5.68% 3.99%
Return on assets 6.18% 2.41% 1.31%
Return on invested capital 9.47% 3.73% 4.09%

Growth

Metric PCAR TEX Farm & Heavy Construction Machinery median
Revenue growth (TTM) (1.53%) 40.10% 1.81%
EPS growth (last fiscal year) (42.91%) (32.86%) (27.79%)
Revenue growth, 5-year CAGR 8.72% 12.00% 6.63%
Net income growth, 5-year CAGR 12.80% 0.00% 0.00%

Health

Metric PCAR TEX Farm & Heavy Construction Machinery median
Debt to equity 0.71 0.52 0.66
Current ratio 3.22 1.76 1.98
Net debt to EBITDA 1.30 2.86 1.12

Dividend

Metric PCAR TEX Farm & Heavy Construction Machinery median
Dividend yield 2.64% 1.24% 1.24%
Payout ratio 0.53 0.34 0.31

Size

Metric PCAR TEX Farm & Heavy Construction Machinery median
Market cap 55.02b 6.13b 836.63m

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