PCAR vs DE

For growth investors, Deere & Company (DE) is the stronger pick with -2.

2% revenue growth year-over-year, versus -15. 5% for PACCAR Inc (PCAR). PACCAR Inc (PCAR) offers the better valuation at 25. 8x trailing P/E (20. 3x forward), making it the more compelling value choice. Analysts rate PACCAR Inc (PCAR) a "Hold" — based on 45 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, PACCAR Inc (PCAR) is the cheapest at 25.

8x versus Deere & Company at 32. 0x. On forward P/E, PACCAR Inc is actually cheaper at 20. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: PACCAR Inc wins at 1. 61x versus Deere & Company's 2. 03x — a reasonable growth-adjusted valuation.

Over the past 5 years, PACCAR Inc (PCAR) delivered a total return of +110.

9%, compared to +58. 7% for Deere & Company (DE). Over 10 years, the gap is even starker: DE returned +676. 6% versus PCAR's +278. 4%. 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 PACCAR Inc's 1. 01β — meaning PCAR is approximately 79% more volatile than DE relative to the S&P 500.

By revenue growth (latest reported year), Deere & Company (DE) is pulling ahead at -2.

2% versus -15. 5% for PACCAR Inc (PCAR). On earnings-per-share growth, the picture is similar: Deere & Company grew EPS 0. 0% year-over-year, compared to -42. 9% for PACCAR Inc. Over a 3-year CAGR, PCAR leads at -0. 4% 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.

Deere & Company (DE) is the more profitable company, earning 11.

3% net margin versus 8. 4% for PACCAR Inc — meaning it keeps 11. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DE leads at 18. 8% versus 10. 4% for PCAR. 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, PACCAR Inc (PCAR) is the more undervalued stock at a PEG of 1. 61x versus Deere & Company's 2. 03x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, PACCAR Inc (PCAR) trades at 20. 3x forward P/E versus 33. 2x for Deere & Company — 12. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DE: 15. 0% to $680. 54.

All stocks in this comparison pay dividends.

PACCAR Inc (PCAR) offers the highest yield at 3. 7%, versus 1. 1% for Deere & Company (DE).

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, +676. 6% 10Y return). Both have compounded well over 10 years (DE: +676. 6%, PCAR: +278. 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: PCAR is a mid-cap income-oriented stock; DE is a mid-cap quality compounder 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.