DE vs. ETN, ABBNY, ITW, PH, CTAS, EMR, CAT, GWW, FERG, and JCI
Should you be buying Deere & Company stock or one of its competitors? The main competitors of Deere & Company include Eaton (ETN), ABB (ABBNY), Illinois Tool Works (ITW), Parker-Hannifin (PH), Cintas (CTAS), Emerson Electric (EMR), Caterpillar (CAT), W.W. Grainger (GWW), Ferguson (FERG), and Johnson Controls International (JCI). These companies are all part of the "industrial products" sector.
Deere & Company (NYSE:DE) and Eaton (NYSE:ETN) are both large-cap industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, media sentiment, valuation, community ranking and institutional ownership.
Deere & Company has a net margin of 16.38% compared to Eaton's net margin of 14.38%. Deere & Company's return on equity of 44.60% beat Eaton's return on equity.
68.6% of Deere & Company shares are held by institutional investors. Comparatively, 83.0% of Eaton shares are held by institutional investors. 0.3% of Deere & Company shares are held by company insiders. Comparatively, 0.5% of Eaton shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Deere & Company pays an annual dividend of $5.88 per share and has a dividend yield of 1.4%. Eaton pays an annual dividend of $3.76 per share and has a dividend yield of 1.1%. Deere & Company pays out 17.1% of its earnings in the form of a dividend. Eaton pays out 44.4% 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. Deere & Company is clearly the better dividend stock, given its higher yield and lower payout ratio.
Deere & Company has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Eaton has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.
In the previous week, Deere & Company had 3 more articles in the media than Eaton. MarketBeat recorded 21 mentions for Deere & Company and 18 mentions for Eaton. Eaton's average media sentiment score of 0.74 beat Deere & Company's score of 0.58 indicating that Eaton is being referred to more favorably in the news media.
Deere & Company received 245 more outperform votes than Eaton when rated by MarketBeat users. However, 66.59% of users gave Eaton an outperform vote while only 65.33% of users gave Deere & Company an outperform vote.
Deere & Company has higher revenue and earnings than Eaton. Deere & Company is trading at a lower price-to-earnings ratio than Eaton, indicating that it is currently the more affordable of the two stocks.
Deere & Company presently has a consensus target price of $433.28, suggesting a potential upside of 6.22%. Eaton has a consensus target price of $314.27, suggesting a potential downside of 4.93%. Given Deere & Company's higher possible upside, analysts clearly believe Deere & Company is more favorable than Eaton.
Summary
Deere & Company and Eaton tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DE and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
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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