CMI vs PCAR vs CAT vs DE vs AGCO

For growth investors, Caterpillar Inc.

(CAT) is the stronger pick with 4. 3% revenue growth year-over-year, versus -15. 5% for PACCAR Inc (PCAR). AGCO Corporation (AGCO) offers the better valuation at 11. 7x trailing P/E (19. 8x forward), making it the more compelling value choice. Analysts rate Cummins Inc. (CMI) a "Buy" — based on 51 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, AGCO Corporation (AGCO) is the cheapest at 11.

7x versus Caterpillar Inc. at 48. 0x. On forward P/E, PACCAR Inc is actually cheaper at 19. 8x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Caterpillar Inc. wins at 1. 39x versus Cummins Inc. 's 2. 27x — a reasonable growth-adjusted valuation.

Over the past 5 years, Caterpillar Inc.

(CAT) delivered a total return of +291. 3%, compared to -10. 7% for AGCO Corporation (AGCO). Over 10 years, the gap is even starker: CAT returned +1203% versus AGCO's +173. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Deere & Company (DE) is the lower-risk stock at 0.

56β versus Cummins Inc. 's 1. 57β — meaning CMI is approximately 179% more volatile than DE relative to the S&P 500. On balance sheet safety, AGCO Corporation (AGCO) carries a lower debt/equity ratio of 59% versus 2% for Deere & Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Caterpillar Inc.

(CAT) is pulling ahead at 4. 3% versus -15. 5% for PACCAR Inc (PCAR). On earnings-per-share growth, the picture is similar: AGCO Corporation grew EPS 271. 4% year-over-year, compared to -42. 9% for PACCAR Inc. Over a 3-year CAGR, CMI leads at 6. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Caterpillar Inc.

(CAT) is the more profitable company, earning 13. 1% net margin versus 7. 2% for AGCO Corporation — meaning it keeps 13. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DE leads at 18. 8% versus 6. 9% for AGCO. At the gross margin level — before operating expenses — DE leads at 36. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Caterpillar Inc. (CAT) is the more undervalued stock at a PEG of 1. 39x versus Cummins Inc. 's 2. 27x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, PACCAR Inc (PCAR) trades at 19. 8x forward P/E versus 39. 2x for Caterpillar Inc. — 19. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DE: 18. 2% to $680. 54.

All stocks in this comparison pay dividends.

PACCAR Inc (PCAR) offers the highest yield at 3. 8%, versus 0. 6% for Caterpillar Inc. (CAT).

For long-horizon retirement investors, Deere & Company (DE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

56), 1. 1% yield, +659. 4% 10Y return). Cummins Inc. (CMI) carries a higher beta of 1. 57 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (DE: +659. 4%, CMI: +542. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: CMI is a mid-cap quality compounder stock; PCAR is a mid-cap income-oriented stock; CAT is a large-cap quality compounder stock; DE is a mid-cap quality compounder stock; AGCO is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.