Caterpillar (NYSE: CAT) and Manitowoc Company, Inc. (The) (NYSE:MTW) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitabiliy and risk.

Profitability

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
Caterpillar -0.38% 16.46% 3.10%
Manitowoc Company, Inc. (The) -14.37% -14.18% -5.63%

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.

Volatility and Risk

Caterpillar has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Manitowoc Company, Inc. (The) has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.

Institutional & Insider 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Caterpillar and Manitowoc Company, Inc. (The), as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Caterpillar 2 10 9 1 2.41
Manitowoc Company, Inc. (The) 1 7 1 0 2.00

Caterpillar currently has a consensus target price of $93.06, indicating a potential downside of 11.12%. Manitowoc Company, Inc. (The) has a consensus target price of $5.41, indicating a potential downside of 9.64%. Given Manitowoc Company, Inc. (The)’s higher possible upside, analysts plainly believe Manitowoc Company, Inc. (The) is more favorable than Caterpillar.

Valuation & Earnings

This table compares Caterpillar and Manitowoc Company, Inc. (The)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Caterpillar $38.90 billion 1.59 $5.40 billion ($0.27) -387.80
Manitowoc Company, Inc. (The) $1.49 billion 0.56 -$3.50 million ($1.55) -3.86

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.

Summary

Caterpillar beats Manitowoc Company, Inc. (The) on 13 of the 17 factors compared between the two stocks.

Caterpillar Company Profile

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.

Manitowoc Company, Inc. (The) Company Profile

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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