Contrasting Deere & Company (NYSE:DE) and Cargotec (OTCMKTS:CYJBF)

Deere & Company (NYSE:DE) and Cargotec (OTCMKTS:CYJBF) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Profitability

This table compares Deere & Company and Cargotec’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Deere & Company	14.69%	36.71%	7.85%
Cargotec	N/A	N/A	N/A

Dividends

Deere & Company pays an annual dividend of $5.88 per share and has a dividend yield of 1.4%. Cargotec pays an annual dividend of $0.42 per share and has a dividend yield of 0.5%. Deere & Company pays out 17.7% of its earnings in the form of a dividend. Cargotec pays out 70.0% 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Deere & Company and Cargotec, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Deere & Company	0	12	8	0	2.40
Cargotec	0	0	0	0	N/A

Deere & Company presently has a consensus price target of $420.69, suggesting a potential upside of 3.13%. Given Deere & Company’s higher probable upside, equities analysts clearly believe Deere & Company is more favorable than Cargotec.

Insider & Institutional Ownership

68.6% of Deere & Company shares are held by institutional investors. Comparatively, 18.1% of Cargotec shares are held by institutional investors. 0.3% of Deere & Company shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Deere & Company and Cargotec”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Deere & Company	$54.85 billion	2.05	$10.17 billion	$33.22	12.28
Cargotec	N/A	N/A	N/A	$0.60	139.32

Deere & Company has higher revenue and earnings than Cargotec. Deere & Company is trading at a lower price-to-earnings ratio than Cargotec, indicating that it is currently the more affordable of the two stocks.

Summary

Deere & Company beats Cargotec on 11 of the 12 factors compared between the two stocks.

About Deere & Company

Deere & Company engages in the manufacture and distribution of various equipment worldwide. The company operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The Production and Precision Agriculture segment provides large and medium tractors, combines, cotton pickers and strippers, sugarcane harvesters and loaders, harvesting front-end equipment, pull-behind scrapers, and tillage and seeding equipment, as well as application equipment, including sprayers and nutrient management, and soil preparation machinery for grain growers. The Small Agriculture and Turf segment offers utility tractors, and related loaders and attachments; turf and utility equipment, including riding lawn equipment, commercial mowing equipment, golf course equipment, and utility vehicles, as well as implements for mowing, tilling, snow and debris handling, aerating, residential, commercial, golf, and sports turf care applications; other outdoor power products; and hay and forage equipment. This segment also resells products from other manufacturers. It serves dairy and livestock producers, crop producers, and turf and utility customers. The Construction and Forestry segment provides a range of backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, motor graders, articulated dump trucks, landscape and skid-steer loaders, milling machines, pavers, compactors, rollers, crushers, screens, asphalt plants, log skidders, log feller bunchers, log loaders and forwarders, log harvesters, and attachments; and roadbuilding equipment. The Financial Services segment finances sales and leases agriculture and turf, and construction and forestry equipment. It also offers wholesale financing to dealers of the foregoing equipment; and extended equipment warranties, as well as finances retail revolving charge accounts. The company was founded in 1837 and is headquartered in Moline, Illinois.

About Cargotec

Cargotec Corporation provides cargo handling solutions and services in Finland, Europe, the Middle East, Africa, the United States, rest of the Americas, China, and rest of Asia-Pacific countries. Its Kalmar segment offers cargo handling equipment and automated terminal solutions, software, and support services for ports, terminals, distribution centers, and heavy industry. Its product portfolio includes straddle and shuttle carriers, reach stackers, empty container handlers, terminal tractors, and forklift trucks; maintenance contracts, technical support, spare parts, training, equipment modernization services, and digital solutions; and Bromma spreaders. The company’s Hiab segment provides load handling equipment under the HIAB, EFFER, and ARGOS brands; forestry and recycling cranes under the LOGLIFT and JONSERED brands; truck mounted forklifts under the MOFFETT and PRINCETON brands; skip loaders and hook lifts under the MULTILIFT brand; tail lifts under the ZEPRO, DEL, and WALTCO brands; ProCare services; HiVision crane operating systems; and HiConnect platform. Its MacGregor segment offers maritime cargo and load handling products, services, and solutions. Cargotec Corporation was incorporated in 2005 and is headquartered in Helsinki, Finland.