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 $58.3B against $6.0B — 9.7× the size. PACCAR Inc. trades at the lower P/E: 23.3× against 25.6×. Terex Corporation grew revenue faster over the last twelve months: 29.2% against −10.6%. PACCAR Inc. has the higher net margin (9.00% vs 2.23%) and the higher return on invested capital (8.85% vs 3.31%). Both pay a dividend; PACCAR Inc. yields more (2.49% vs 1.34%). Across the 23 metrics below, PACCAR Inc. leads on 15 and Terex Corporation on 8.

Valuation

Metric PCAR TEX Farm & Heavy Construction Machinery median
P/E 23.28 25.59 23.28
P/S 2.10 0.87 0.75
P/B 2.87 1.17 1.43
Price to free cash flow 15.86 16.92 22.25
EV/EBITDA 14.16 12.93 11.41
EV/Sales 2.31 1.21 1.14
Earnings yield 4.30% 3.91% 2.83%
Free cash flow yield 6.31% 5.91% 2.91%

Profitability

Metric PCAR TEX Farm & Heavy Construction Machinery median
Gross margin 19.99% 17.16% 24.21%
Operating margin 13.33% 5.72% 4.47%
Net margin 9.00% 2.23% 1.49%
Free cash flow margin 13.24% 5.12% 2.15%
Return on equity 12.76% 4.33% 3.99%
Return on assets 5.69% 1.81% 1.31%
Return on invested capital 8.85% 3.31% 3.36%

Growth

Metric PCAR TEX Farm & Heavy Construction Machinery median
Revenue growth (TTM) (10.56%) 29.17% 2.18%
EPS growth (last fiscal year) (42.91%) (32.86%) (27.79%)
Revenue growth, 5-year CAGR 8.72% 12.00% 7.34%
Net income growth, 5-year CAGR 12.80% 0.00% 0.00%

Health

Metric PCAR TEX Farm & Heavy Construction Machinery median
Debt to equity 0.72 0.55 0.67
Current ratio 3.12 1.82 1.98
Net debt to EBITDA 1.30 2.86 1.12

Dividend

Metric PCAR TEX Farm & Heavy Construction Machinery median
Dividend yield 2.49% 1.34% 1.34%
Payout ratio 0.58 0.35 0.30

Size

Metric PCAR TEX Farm & Heavy Construction Machinery median
Market cap 58.33b 6.02b 808.87m

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