ABBNY vs. DE, ITW, PH, CTAS, EMR, ETN, HON, GWW, FERG, and JCI
Should you be buying ABB stock or one of its competitors? The main competitors of ABB include Deere & Company (DE), Illinois Tool Works (ITW), Parker-Hannifin (PH), Cintas (CTAS), Emerson Electric (EMR), Eaton (ETN), Honeywell International (HON), W.W. Grainger (GWW), Ferguson (FERG), and Johnson Controls International (JCI).
Deere & Company (NYSE:DE) and ABB (NYSE:ABBNY) are both large-cap industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, media sentiment, analyst recommendations, profitability, earnings, dividends, community ranking and institutional ownership.
Deere & Company has a net margin of 16.38% compared to Deere & Company's net margin of 11.21%. ABB's return on equity of 44.60% beat Deere & Company's return on equity.
Deere & Company pays an annual dividend of $5.88 per share and has a dividend yield of 1.4%. ABB pays an annual dividend of $0.61 per share and has a dividend yield of 1.2%. Deere & Company pays out 17.1% of its earnings in the form of a dividend. ABB pays out 31.4% 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 has raised its dividend for 3 consecutive years. Deere & Company is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, Deere & Company had 21 more articles in the media than ABB. MarketBeat recorded 24 mentions for Deere & Company and 3 mentions for ABB. ABB's average media sentiment score of 0.52 beat Deere & Company's score of 0.30 indicating that Deere & Company is being referred to more favorably in the media.
Deere & Company received 451 more outperform votes than ABB when rated by MarketBeat users. Likewise, 65.33% of users gave Deere & Company an outperform vote while only 62.77% of users gave ABB an outperform vote.
Deere & Company presently has a consensus price target of $433.28, suggesting a potential upside of 7.15%. Given ABB's higher possible upside, analysts plainly believe Deere & Company is more favorable than ABB.
Deere & Company has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, ABB has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.
Deere & Company has higher revenue and earnings than ABB. Deere & Company is trading at a lower price-to-earnings ratio than ABB, indicating that it is currently the more affordable of the two stocks.
68.6% of Deere & Company shares are owned by institutional investors. Comparatively, 1.1% of ABB shares are owned by institutional investors. 0.3% of Deere & Company shares are owned by company insiders. Comparatively, 4.9% of ABB shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Deere & Company beats ABB on 16 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ABBNY 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.
ABBNY vs. The Competition
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