Caterpillar (NYSE: CAT) and Manitowoc Company, Inc. (The) (NYSE:MTW) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitabiliy, valuation and dividends.
Caterpillar pays an annual dividend of $3.08 per share and has a dividend yield of 2.9%. Manitowoc Company, Inc. (The) does not pay a dividend. Caterpillar pays out -1,140.7% of its earnings in the form of a dividend. Caterpillar has increased its dividend for 7 consecutive years.
Earnings and Valuation
This table compares Caterpillar and Manitowoc Company, Inc. (The)’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Caterpillar||$38.90 billion||1.63||$5.40 billion||($0.27)||-398.50|
|Manitowoc Company, Inc. (The)||$1.49 billion||0.56||-$3.50 million||($1.55)||-3.84|
Caterpillar has higher revenue and earnings than Manitowoc Company, Inc. (The). Caterpillar is trading at a lower price-to-earnings ratio than Manitowoc Company, Inc. (The), indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Caterpillar has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Manitowoc Company, Inc. (The) has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Caterpillar and Manitowoc Company, Inc. (The), as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Manitowoc Company, Inc. (The)||1||6||2||0||2.11|
Caterpillar presently has a consensus price target of $93.06, suggesting a potential downside of 13.51%. Manitowoc Company, Inc. (The) has a consensus price target of $5.41, suggesting a potential downside of 9.03%. Given Manitowoc Company, Inc. (The)’s higher probable upside, analysts clearly believe Manitowoc Company, Inc. (The) is more favorable than Caterpillar.
This table compares Caterpillar and Manitowoc Company, Inc. (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Manitowoc Company, Inc. (The)||-14.37%||-14.18%||-5.63%|
Insider & Institutional Ownership
72.5% of Caterpillar shares are owned by institutional investors. Comparatively, 79.1% of Manitowoc Company, Inc. (The) shares are owned by institutional investors. 0.2% of Caterpillar shares are owned by insiders. Comparatively, 2.7% of Manitowoc Company, Inc. (The) shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Caterpillar beats Manitowoc Company, Inc. (The) on 13 of the 17 factors compared between the two stocks.
Caterpillar Inc. is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Company operates through segments, including Construction Industries, which is engaged in supporting customers using machinery in infrastructure, forestry and building construction; Resource Industries, which is engaged in supporting customers using machinery in mining, quarry, waste and material handling applications; Energy & Transportation, which supports customers in oil and gas, power generation, marine, rail and industrial applications, including Cat machines; Financial Products segment, which provides financing and related services, and All Other operating segments, which includes activities, such as product management and development, and manufacturing of filters and fluids, undercarriage, tires and rims, ground engaging tools, fluid transfer products, and sealing and connecting components for Cat products.
About Manitowoc Company, Inc. (The)
The Manitowoc Company, Inc. is a provider of engineered lifting equipment for the construction industry. The Company operates through the Crane business segment. It designs, manufactures and distributes a line of crawler-mounted lattice-boom cranes, which it sells under the Manitowoc brand name. It also designs and manufactures a line of top-slewing and self-erecting tower cranes, which it sells under the Potain brand name. It designs and manufactures mobile telescopic cranes, which it sells under the Grove brand name and a line of hydraulically powered telescopic boom trucks, which it sells under the National Crane brand name. It also provides crane product parts and services and crane rebuilding, remanufacturing and training services, which are delivered under the Manitowoc Crane Care brand name. Its crane products are used in a range of applications, including energy production/distribution and utilities, petrochemical and industrial projects, and infrastructure applications.
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