ETN vs. DE, ABBNY, CAT, ITW, PH, CTAS, EMR, GWW, FERG, and JCI
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), Emerson Electric (EMR), W.W. Grainger (GWW), Ferguson (FERG), and Johnson Controls International (JCI). These companies are all part of the "industrial products" sector.
Eaton (NYSE:ETN) and Deere & Company (NYSE:DE) are both large-cap industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation, dividends, media sentiment and community ranking.
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.
Eaton pays an annual dividend of $3.76 per share and has a dividend yield of 1.1%. Deere & Company pays an annual dividend of $5.88 per share and has a dividend yield of 1.5%. Eaton pays out 44.4% of its earnings in the form of a dividend. Deere & Company pays out 17.1% 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.
In the previous week, Eaton had 5 more articles in the media than Deere & Company. MarketBeat recorded 27 mentions for Eaton and 22 mentions for Deere & Company. Eaton's average media sentiment score of 0.77 beat Deere & Company's score of 0.49 indicating that Eaton is being referred to more favorably in the media.
83.0% of Eaton shares are held by institutional investors. Comparatively, 68.6% of Deere & Company shares are held by institutional investors. 0.3% of Eaton shares are held by company insiders. Comparatively, 0.3% of Deere & Company shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Eaton currently has a consensus price target of $314.27, suggesting a potential downside of 3.98%. Deere & Company has a consensus price target of $433.28, suggesting a potential upside of 6.83%. Given Deere & Company's higher probable upside, analysts clearly believe Deere & Company is more favorable than Eaton.
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.
Eaton has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Deere & Company has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.
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.
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 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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