PACCAR (PCAR) Competitors

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

Is CAT or PCAR a better dividend stock?

Caterpillar pays an annual dividend of $5.64 per share and has a dividend yield of 1.4%. PACCAR pays an annual dividend of $1.20 per share and has a dividend yield of 1.1%. Caterpillar pays out 26.1% of its earnings in the form of a dividend. PACCAR pays out 13.4% 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.

Do insiders & institutionals hold more shares of 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 will outperform the market over the long term.

Is CAT or PCAR more profitable?

Caterpillar has a net margin of 16.26% compared to PACCAR's net margin of 13.51%. Caterpillar's return on equity of 59.09% beat PACCAR's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Caterpillar	16.26%	59.09%	12.77%
PACCAR	13.51%	27.24%	11.37%

Does the media refer more to CAT or PCAR?

In the previous week, Caterpillar had 42 more articles in the media than PACCAR. MarketBeat recorded 66 mentions for Caterpillar and 24 mentions for PACCAR. Caterpillar's average media sentiment score of 1.02 beat PACCAR's score of 0.86 indicating that Caterpillar is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Caterpillar	49 Very Positive mention(s)	1 Positive mention(s)	8 Neutral mention(s)	5 Negative mention(s)	0 Very Negative mention(s)	Positive
PACCAR	11 Very Positive mention(s)	3 Positive mention(s)	6 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has higher 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	$67.06B	2.86	$10.34B	$21.57	18.40
PACCAR	$35.13B	1.65	$4.60B	$8.95	12.34

Does the MarketBeat Community prefer CAT or PCAR?

Caterpillar received 629 more outperform votes than PACCAR when rated by MarketBeat users. Likewise, 62.38% of users gave Caterpillar an outperform vote while only 53.00% of users gave PACCAR an outperform vote.

Company	Underperform	Outperform
Caterpillar	Outperform Votes 1204 62.38%	Underperform Votes 726 37.62%
PACCAR	Outperform Votes 575 53.00%	Underperform Votes 510 47.00%

Do analysts rate CAT or PCAR?

Caterpillar currently has a consensus price target of $380.60, suggesting a potential downside of 4.12%. PACCAR has a consensus price target of $120.13, suggesting a potential upside of 8.75%. 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
Caterpillar	3 Sell rating(s)	7 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.24
PACCAR	0 Sell rating(s)	8 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.43

Which has more risk and volatility, CAT or PCAR?

Caterpillar has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500. Comparatively, PACCAR has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Summary

Caterpillar beats PACCAR on 17 of the 21 factors compared between the two stocks.