PACCAR (PCAR) Competitors

PACCAR (NASDAQ:PCAR) and Caterpillar (NYSE:CAT) are both large-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, media sentiment, profitability, community ranking, dividends and analyst recommendations.

Is PCAR or CAT a better dividend stock?

PACCAR pays an annual dividend of $1.32 per share and has a dividend yield of 1.3%. Caterpillar pays an annual dividend of $5.64 per share and has a dividend yield of 1.6%. PACCAR pays out 16.7% of its earnings in the form of a dividend. Caterpillar pays out 25.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Caterpillar has raised its dividend for 30 consecutive years. Caterpillar is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Is PCAR or CAT more profitable?

Caterpillar has a net margin of 16.65% compared to PACCAR's net margin of 12.36%. Caterpillar's return on equity of 58.18% beat PACCAR's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
PACCAR	12.36%	23.53%	9.89%
Caterpillar	16.65%	58.18%	12.57%

Does the MarketBeat Community favor PCAR or CAT?

Caterpillar received 631 more outperform votes than PACCAR when rated by MarketBeat users. Likewise, 62.29% of users gave Caterpillar an outperform vote while only 53.11% of users gave PACCAR an outperform vote.

Company	Underperform	Outperform
PACCAR	Outperform Votes 580 53.11%	Underperform Votes 512 46.89%
Caterpillar	Outperform Votes 1211 62.29%	Underperform Votes 733 37.71%

Do institutionals & insiders hold more shares of PCAR or CAT?

64.9% of PACCAR shares are held by institutional investors. Comparatively, 71.0% of Caterpillar shares are held by institutional investors. 2.0% of PACCAR shares are held by insiders. Comparatively, 0.3% of Caterpillar shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Which has better valuation and earnings, PCAR or CAT?

Caterpillar has higher revenue and earnings than PACCAR. PACCAR is trading at a lower price-to-earnings ratio than Caterpillar, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PACCAR	$33.66B	1.55	$4.16B	$7.91	12.53
Caterpillar	$64.81B	2.53	$10.79B	$22.07	15.53

Does the media refer more to PCAR or CAT?

In the previous week, Caterpillar had 14 more articles in the media than PACCAR. MarketBeat recorded 48 mentions for Caterpillar and 34 mentions for PACCAR. Caterpillar's average media sentiment score of 1.40 beat PACCAR's score of 0.80 indicating that Caterpillar is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
PACCAR	19 Very Positive mention(s)	1 Positive mention(s)	6 Neutral mention(s)	7 Negative mention(s)	0 Very Negative mention(s)	Positive
Caterpillar	41 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts recommend PCAR or CAT?

PACCAR currently has a consensus price target of $118.23, indicating a potential upside of 19.31%. Caterpillar has a consensus price target of $383.80, indicating a potential upside of 11.96%. Given PACCAR's stronger consensus rating and higher probable upside, analysts plainly believe PACCAR is more favorable than Caterpillar.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACCAR	0 Sell rating(s)	8 Hold rating(s)	6 Buy rating(s)	1 Strong Buy rating(s)	2.53
Caterpillar	2 Sell rating(s)	7 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.39

Which has more risk & volatility, PCAR or CAT?

PACCAR has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Caterpillar has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Summary

Caterpillar beats PACCAR on 17 of the 22 factors compared between the two stocks.