Deere & Company (DE) Competitors

Caterpillar (NYSE:CAT) and Deere & Company (NYSE:DE) are both large-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, media sentiment, dividends, valuation, risk, institutional ownership, community ranking, analyst recommendations and earnings.

Which has stronger valuation and earnings, CAT or DE?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Caterpillar	$64.81B	2.52	$10.79B	$22.07	15.49
Deere & Company	$46.93B	2.78	$7.10B	$22.56	21.30

Do insiders & institutionals have more ownership in CAT or DE?

71.0% of Caterpillar shares are held by institutional investors. Comparatively, 68.6% of Deere & Company shares are held by institutional investors. 0.3% of Caterpillar shares are held by company insiders. Comparatively, 0.3% of Deere & Company shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Does the media favor CAT or DE?

In the previous week, Caterpillar had 2 more articles in the media than Deere & Company. MarketBeat recorded 48 mentions for Caterpillar and 46 mentions for Deere & Company. Caterpillar's average media sentiment score of 1.40 beat Deere & Company's score of 1.37 indicating that Caterpillar is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Caterpillar	41 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Deere & Company	39 Very Positive mention(s)	2 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts prefer CAT or DE?

Caterpillar presently has a consensus target price of $383.80, suggesting a potential upside of 12.28%. Deere & Company has a consensus target price of $460.00, suggesting a potential downside of 4.25%. Given Caterpillar's stronger consensus rating and higher probable upside, research analysts plainly believe Caterpillar is more favorable than Deere & Company.

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
Deere & Company	0 Sell rating(s)	13 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.38

Is CAT or DE a better dividend stock?

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.

Which has more volatility & risk, CAT or DE?

Caterpillar has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Deere & Company has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Does the MarketBeat Community believe in CAT or DE?

Caterpillar received 50 more outperform votes than Deere & Company when rated by MarketBeat users. However, 64.57% of users gave Deere & Company an outperform vote while only 62.29% of users gave Caterpillar an outperform vote.

Company	Underperform	Outperform
Caterpillar	Outperform Votes 1211 62.29%	Underperform Votes 733 37.71%
Deere & Company	Outperform Votes 1161 64.57%	Underperform Votes 637 35.43%

Is CAT or DE more profitable?

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.

Company	Net Margins	Return on Equity	Return on Assets
Caterpillar	16.65%	58.18%	12.57%
Deere & Company	12.94%	27.31%	5.87%

Summary

Caterpillar beats Deere & Company on 16 of the 20 factors compared between the two stocks.