TNC vs CAT vs DE vs NDSN

For growth investors, Caterpillar Inc.

(CAT) is the stronger pick with 4. 3% revenue growth year-over-year, versus -11. 6% for Deere & Company (DE). Deere & Company (DE) offers the better valuation at 31. 1x trailing P/E (31. 8x forward), making it the more compelling value choice. Analysts rate Tennant Company (TNC) a "Buy" — based on 8 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, Deere & Company (DE) is the cheapest at 31.

1x versus Caterpillar Inc. at 49. 6x. On forward P/E, Tennant Company is actually cheaper at 16. 9x — 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. 35x versus Tennant Company's 3. 11x — a reasonable growth-adjusted valuation.

Over the past 5 years, Caterpillar Inc.

(CAT) delivered a total return of +337. 5%, compared to +12. 6% for Tennant Company (TNC). Over 10 years, the gap is even starker: CAT returned +1203% versus TNC's +78. 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.

60β versus Caterpillar Inc. 's 1. 67β — meaning CAT is approximately 179% more volatile than DE relative to the S&P 500. On balance sheet safety, Tennant Company (TNC) carries a lower debt/equity ratio of 57% 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 -11. 6% for Deere & Company (DE). On earnings-per-share growth, the picture is similar: Nordson Corporation grew EPS 4. 9% year-over-year, compared to -46. 1% for Tennant Company. Over a 3-year CAGR, CAT leads at 4. 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.

Nordson Corporation (NDSN) is the more profitable company, earning 17.

4% net margin versus 3. 6% for Tennant Company — meaning it keeps 17. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NDSN leads at 25. 9% versus 6. 7% for TNC. At the gross margin level — before operating expenses — NDSN leads at 55. 2%, 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. 35x versus Tennant Company's 3. 11x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Tennant Company (TNC) trades at 16. 9x forward P/E versus 37. 9x for Caterpillar Inc. — 21. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TNC: 61. 7% to $140. 00.

All stocks in this comparison pay dividends.

Tennant Company (TNC) offers the highest yield at 1. 4%, 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.

60), 1. 1% yield, +626. 6% 10Y return). Both have compounded well over 10 years (DE: +626. 6%, TNC: +78. 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.

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.