DE vs. ETN, ABBNY, ITW, PH, CTAS, EMR, CAT, GWW, JCI, and FERG
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), Johnson Controls International (JCI), and Ferguson (FERG). 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 investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, community ranking, media sentiment, valuation and risk.
In the previous week, Eaton had 18 more articles in the media than Deere & Company. MarketBeat recorded 41 mentions for Eaton and 23 mentions for Deere & Company. Eaton's average media sentiment score of 0.76 beat Deere & Company's score of 0.65 indicating that Eaton is being referred to more favorably in the news media.
68.6% of Deere & Company shares are owned by institutional investors. Comparatively, 83.0% of Eaton shares are owned by institutional investors. 0.3% of Deere & Company shares are owned by company insiders. Comparatively, 0.5% of Eaton shares are owned 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.
Deere & Company presently has a consensus price target of $433.28, suggesting a potential upside of 8.06%. Eaton has a consensus price target of $314.27, suggesting a potential downside of 1.94%. Given Deere & Company's higher probable upside, equities research analysts plainly believe Deere & Company is more favorable than Eaton.
Deere & Company has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Eaton has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.
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 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.
Deere & Company pays an annual dividend of $5.88 per share and has a dividend yield of 1.5%. Eaton pays an annual dividend of $3.76 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. 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 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.
Summary
Eaton beats Deere & Company on 11 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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