Brendan says Deere is a little more expensive in terms of PE, but he likes Caterpillar's growth prospects better. The company has a lot of room to expand in China if it can do so wisely.
A rebound for commodity prices, combined with the return of the housing and construction market could both serve as catalysts for Caterpillar. So, while he would not bet against Deere, Brendan likes Caterpillar better in terms of its current value and growth prospects.
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. Read all about Caterpillar's strengths and weaknesses in our brand new report. Just click here to access it now.