Deere & Company (NYSE:DE – Get Free Report) is one of 436 public companies in the “Machinery” industry, but how does it weigh in compared to its rivals? We will compare Deere & Company to related companies based on the strength of its dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.
Profitability
This table compares Deere & Company and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Deere & Company | 10.16% | 18.10% | 4.60% |
| Deere & Company Competitors | -1,044.43% | -15.08% | 0.57% |
Dividends
Deere & Company pays an annual dividend of $6.48 per share and has a dividend yield of 1.0%. Deere & Company pays out 36.0% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 24.6% of their earnings in the form of a dividend. Deere & Company has raised its dividend for 4 consecutive years. Deere & Company lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Deere & Company and its rivals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Deere & Company | 0 | 8 | 17 | 0 | 2.68 |
| Deere & Company Competitors | 4206 | 14708 | 18216 | 808 | 2.41 |
Deere & Company presently has a consensus target price of $688.10, indicating a potential upside of 2.40%. As a group, “Machinery” companies have a potential upside of 36.05%. Given Deere & Company’s rivals higher possible upside, analysts clearly believe Deere & Company has less favorable growth aspects than its rivals.
Insider & Institutional Ownership
68.6% of Deere & Company shares are held by institutional investors. Comparatively, 51.8% of shares of all “Machinery” companies are held by institutional investors. 0.3% of Deere & Company shares are held by company insiders. Comparatively, 14.2% of shares of all “Machinery” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Deere & Company has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Deere & Company’s rivals have a beta of 5.12, suggesting that their average share price is 412% more volatile than the S&P 500.
Earnings and Valuation
This table compares Deere & Company and its rivals gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Deere & Company | $45.68 billion | $5.03 billion | 37.33 |
| Deere & Company Competitors | $4.61 billion | $364.05 million | 5.03 |
Deere & Company has higher revenue and earnings than its rivals. Deere & Company is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Summary
Deere & Company beats its rivals on 9 of the 15 factors compared.
About Deere & Company
Deere & Co. engages in the manufacture and distribution of equipment used in agriculture, construction, forestry, and turf care. It operates through the following segments: Agriculture and Turf, Construction and Forestry, and Financial Services. The Agriculture and Turf segment focuses on the distribution and manufacture of a full line of agriculture and turf equipment and related service parts. The Construction and Forestry segment offers machines and service parts used in construction, earthmoving, road building, material handling and timber harvesting. The Financial Services segment finances sales and leases by John Deere dealers of new and used agriculture and turf equipment and construction and forestry equipment. The company was founded by John Deere in 1837 and is headquartered in Moline, IL.
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