ETN vs. DE, ABBNY, CAT, ITW, PH, CTAS, GWW, JCI, FERG, and IR
Should you be buying Eaton stock or one of its competitors? The main competitors of Eaton include Deere & Company (DE), ABB (ABBNY), Caterpillar (CAT), Illinois Tool Works (ITW), Parker-Hannifin (PH), Cintas (CTAS), W.W. Grainger (GWW), Johnson Controls International (JCI), Ferguson (FERG), and Ingersoll Rand (IR). 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 compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership, risk, community ranking and media sentiment.
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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Deere & Company received 245 more outperform votes than Eaton when rated by MarketBeat users. However, 66.64% of users gave Eaton an outperform vote while only 65.33% of users gave Deere & Company an outperform vote.
Deere & Company has a net margin of 16.38% compared to Deere & Company's net margin of 14.38%. Eaton's return on equity of 44.60% beat Deere & Company's return on equity.
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.
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 0.78 beat Deere & Company's score of 0.76 indicating that Deere & Company is being referred to more favorably in the media.
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 has increased its dividend for 3 consecutive years and Eaton has increased its dividend for 15 consecutive years. Deere & Company is clearly the better dividend stock, given its higher yield and lower payout ratio.
Deere & Company presently has a consensus price target of $433.28, indicating a potential upside of 10.21%. Eaton has a consensus price target of $309.60, indicating a potential downside of 0.12%. Given Eaton's higher possible upside, analysts plainly believe Deere & Company is more favorable than Eaton.
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.
Summary
Eaton beats Deere & Company on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ETN 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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