PACCAR (PCAR) Competitors

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

Do institutionals and insiders believe in CAT or PCAR?

71.0% of Caterpillar shares are owned by institutional investors. Comparatively, 64.9% of PACCAR shares are owned by institutional investors. 0.3% of Caterpillar shares are owned by company insiders. Comparatively, 2.0% of PACCAR shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Does the media favor CAT or PCAR?

In the previous week, Caterpillar had 36 more articles in the media than PACCAR. MarketBeat recorded 73 mentions for Caterpillar and 37 mentions for PACCAR. PACCAR's average media sentiment score of 0.88 beat Caterpillar's score of 0.84 indicating that PACCAR is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Caterpillar	41 Very Positive mention(s)	4 Positive mention(s)	13 Neutral mention(s)	7 Negative mention(s)	1 Very Negative mention(s)	Positive
PACCAR	21 Very Positive mention(s)	1 Positive mention(s)	5 Neutral mention(s)	6 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has better earnings & valuation, CAT or PCAR?

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
Caterpillar	$64.81B	2.20	$10.79B	$22.07	13.51
PACCAR	$33.66B	1.40	$4.16B	$7.91	11.32

Is CAT or PCAR 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
Caterpillar	16.65%	58.18%	12.57%
PACCAR	12.36%	23.53%	9.89%

Do analysts rate CAT or PCAR?

Caterpillar currently has a consensus price target of $365.87, suggesting a potential upside of 22.75%. PACCAR has a consensus price target of $112.13, suggesting a potential upside of 25.21%. Given PACCAR's stronger consensus rating and higher possible upside, analysts plainly believe PACCAR is more favorable than Caterpillar.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caterpillar	2 Sell rating(s)	7 Hold rating(s)	9 Buy rating(s)	0 Strong Buy rating(s)	2.39
PACCAR	1 Sell rating(s)	7 Hold rating(s)	6 Buy rating(s)	1 Strong Buy rating(s)	2.47

Which has more volatility and risk, CAT or PCAR?

Caterpillar has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, PACCAR has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Does the MarketBeat Community believe in CAT or PCAR?

Caterpillar received 633 more outperform votes than PACCAR when rated by MarketBeat users. Likewise, 62.32% of users gave Caterpillar an outperform vote while only 52.91% of users gave PACCAR an outperform vote.

Company	Underperform	Outperform
Caterpillar	Outperform Votes 1214 62.32%	Underperform Votes 734 37.68%
PACCAR	Outperform Votes 581 52.91%	Underperform Votes 517 47.09%

Is CAT or PCAR a better dividend stock?

Caterpillar pays an annual dividend of $5.64 per share and has a dividend yield of 1.9%. PACCAR pays an annual dividend of $1.32 per share and has a dividend yield of 1.5%. Caterpillar pays out 25.6% of its earnings in the form of a dividend. PACCAR pays out 16.7% 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.

Summary

Caterpillar beats PACCAR on 16 of the 22 factors compared between the two stocks.