DE vs. ABBNY, ETN, 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 ABB (ABBNY), Eaton (ETN), 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 ABB (NYSE:ABBNY) are both large-cap industrial products companies, but which is the better business? We will compare the two companies based on the strength of their community ranking, analyst recommendations, institutional ownership, valuation, earnings, risk, media sentiment, dividends and profitability.
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 pays an annual dividend of $5.88 per share and has a dividend yield of 1.5%. ABB pays an annual dividend of $0.58 per share and has a dividend yield of 1.1%. Deere & Company pays out 17.7% of its earnings in the form of a dividend. ABB pays out 29.9% 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 net margin of 16.15% compared to ABB's net margin of 11.21%. Deere & Company's return on equity of 42.26% beat ABB's return on equity.
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.
Deere & Company received 454 more outperform votes than ABB when rated by MarketBeat users. Likewise, 65.28% 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 target price of $435.78, suggesting a potential upside of 9.76%. Given Deere & Company's stronger consensus rating and higher probable upside, analysts plainly believe Deere & Company is more favorable than ABB.
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 insiders. Comparatively, 4.9% of ABB shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
In the previous week, Deere & Company had 61 more articles in the media than ABB. MarketBeat recorded 63 mentions for Deere & Company and 2 mentions for ABB. Deere & Company's average media sentiment score of 0.41 beat ABB's score of 0.25 indicating that Deere & Company is being referred to more favorably in the media.
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 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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