Better Buy: Deere vs. Caterpillar

Analyst Brendan Byrnes examines manufacturing giants Deere (NYSE: DE  ) and Caterpillar, (NYSE: CAT  ) both of which have underperformed the market so far this year. Deere has been hurt by a saturated North American farm-equipment market, though it does look cheap and should benefit from long-term trends in advancing food quality, especially in developing countries. Still, Brendan picks Caterpillar as the better buy right now, trading at less than 10 times earnings and with a more attractive growth profile than Deere. Caterpillar's high-margin resource industries segment, which includes mining, is one that bears watching closely. Check out the following video for more on these two industrial behemoths.

Caterpillar is the market-share leader in an industry in which size matters, and its quality products, extensive service network, and unparalleled brand strength combine to give it solid competitive advantages. But does that make it a buy now according to our analysts? Read all about Caterpillar's strengths and weaknesses in our brand-new report. Just click here to access it now.

Andrew Tonner and The Motley Fool have no positions in the stocks mentioned above. Brendan Byrnes owns shares of Caterpillar. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2010454, ~/Articles/ArticleHandler.aspx, 10/23/2014 6:14:21 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement