Terex (TEX) Competitors

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

Does the media prefer CAT or TEX?

In the previous week, Caterpillar had 58 more articles in the media than Terex. MarketBeat recorded 63 mentions for Caterpillar and 5 mentions for Terex. Caterpillar's average media sentiment score of 1.33 beat Terex's score of 1.08 indicating that Caterpillar is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Caterpillar	56 Very Positive mention(s)	2 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Terex	2 Very Positive mention(s)	2 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do institutionals and insiders believe in CAT or TEX?

71.0% of Caterpillar shares are held by institutional investors. Comparatively, 92.9% of Terex shares are held by institutional investors. 0.3% of Caterpillar shares are held by company insiders. Comparatively, 1.9% of Terex shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Which has more risk & volatility, CAT or TEX?

Caterpillar has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Terex has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.

Is CAT or TEX more profitable?

Caterpillar has a net margin of 15.71% compared to Terex's net margin of 4.89%. Caterpillar's return on equity of 53.77% beat Terex's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Caterpillar	15.71%	53.77%	11.64%
Terex	4.89%	18.79%	7.32%

Which has higher earnings and valuation, CAT or TEX?

Caterpillar has higher revenue and earnings than Terex. Terex 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	2.87	$10.79B	$20.52	19.21
Terex	$5.13B	0.66	$335M	$3.67	13.83

Is CAT or TEX a better dividend stock?

Caterpillar pays an annual dividend of $5.64 per share and has a dividend yield of 1.4%. Terex pays an annual dividend of $0.68 per share and has a dividend yield of 1.3%. Caterpillar pays out 27.5% of its earnings in the form of a dividend. Terex pays out 18.5% 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 and Terex has raised its dividend for 5 consecutive years. Caterpillar is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do analysts rate CAT or TEX?

Caterpillar currently has a consensus price target of $380.83, indicating a potential downside of 3.40%. Terex has a consensus price target of $51.40, indicating a potential upside of 1.30%. Given Terex's higher probable upside, analysts clearly believe Terex is more favorable than Caterpillar.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caterpillar	0 Sell rating(s)	5 Hold rating(s)	9 Buy rating(s)	1 Strong Buy rating(s)	2.73
Terex	0 Sell rating(s)	6 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.55

Summary

Caterpillar beats Terex on 14 of the 19 factors compared between the two stocks.