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.
Brendan Byrnes owns shares of Caterpillar. The Motley Fool owns shares of General Electric Company and Joy Global. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.