CAT vs. DE, PCAR, CMI, WAB, TTC, AGCO, OSK, FSS, TEX, and TRN
Should you be buying Caterpillar stock or one of its competitors? The main competitors of Caterpillar include Deere & Company (DE), PACCAR (PCAR), Cummins (CMI), Westinghouse Air Brake Technologies (WAB), Toro (TTC), AGCO (AGCO), Oshkosh (OSK), Federal Signal (FSS), Terex (TEX), and Trinity Industries (TRN). These companies are all part of the "construction & farm machinery & heavy trucks" industry.
Caterpillar vs.
Caterpillar (NYSE:CAT) and Deere & Company (NYSE:DE) are both large-cap industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, dividends, earnings, media sentiment, valuation and community ranking.
Caterpillar presently has a consensus target price of $383.80, suggesting a potential upside of 10.02%. Deere & Company has a consensus target price of $454.65, suggesting a potential downside of 8.39%. Given Caterpillar's higher probable upside, analysts plainly believe Caterpillar is more favorable than Deere & Company.
Caterpillar pays an annual dividend of $5.64 per share and has a dividend yield of 1.6%. Deere & Company pays an annual dividend of $6.48 per share and has a dividend yield of 1.3%. Caterpillar pays out 25.6% of its earnings in the form of a dividend. Deere & Company pays out 28.7% 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.
Caterpillar received 48 more outperform votes than Deere & Company when rated by MarketBeat users. However, 64.72% of users gave Deere & Company an outperform vote while only 62.32% of users gave Caterpillar an outperform vote.
71.0% of Caterpillar shares are owned by institutional investors. Comparatively, 68.6% of Deere & Company shares are owned by institutional investors. 0.3% of Caterpillar shares are owned by insiders. Comparatively, 0.3% of Deere & Company shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
In the previous week, Deere & Company had 2 more articles in the media than Caterpillar. MarketBeat recorded 73 mentions for Deere & Company and 71 mentions for Caterpillar. Caterpillar's average media sentiment score of 1.21 beat Deere & Company's score of 0.80 indicating that Caterpillar is being referred to more favorably in the media.
Caterpillar has a net margin of 16.65% compared to Deere & Company's net margin of 12.94%. Caterpillar's return on equity of 58.18% beat Deere & Company's return on equity.
Caterpillar has higher revenue and earnings than Deere & Company. Caterpillar is trading at a lower price-to-earnings ratio than Deere & Company, indicating that it is currently the more affordable of the two stocks.
Caterpillar has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Deere & Company has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Summary
Caterpillar beats Deere & Company on 13 of the 20 factors compared between the two stocks.
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New MarketBeat Followers Over Time
This chart shows the number of new MarketBeat users adding {thisCompany.Symbol} and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Media Sentiment Over Time
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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This page (NYSE:CAT) was last updated on 2/21/2025 by MarketBeat.com Staff
