Critical Comparison: Arcosa (ACA) and Deere & Company (DE)

Arcosa (NYSE:ACA) and Deere & Company (NYSE:DE) are both construction companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Profitability

This table compares Arcosa and Deere & Company’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arcosa N/A N/A N/A
Deere & Company 6.34% 29.61% 4.44%

Analyst Recommendations

This is a summary of recent recommendations for Arcosa and Deere & Company, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arcosa 0 0 2 0 3.00
Deere & Company 0 7 14 0 2.67

Arcosa presently has a consensus price target of $43.50, indicating a potential upside of 59.11%. Deere & Company has a consensus price target of $176.29, indicating a potential upside of 13.83%. Given Arcosa’s stronger consensus rating and higher probable upside, equities analysts plainly believe Arcosa is more favorable than Deere & Company.

Insider and Institutional Ownership

65.5% of Deere & Company shares are held by institutional investors. 0.7% of Deere & Company shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Arcosa and Deere & Company’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Arcosa N/A N/A N/A N/A N/A
Deere & Company $37.36 billion 1.33 $2.37 billion $9.39 16.49

Deere & Company has higher revenue and earnings than Arcosa.

Dividends

Deere & Company pays an annual dividend of $2.76 per share and has a dividend yield of 1.8%. Arcosa does not pay a dividend. Deere & Company pays out 29.4% of its earnings in the form of a dividend.

Summary

Deere & Company beats Arcosa on 8 of the 11 factors compared between the two stocks.

About Arcosa

There is no company description available for Arcosa Inc.

About Deere & Company

Deere & Company, together with its subsidiaries, manufactures and distributes agriculture and turf, and construction and forestry equipment worldwide. The company's Agriculture and Turf segment provides agriculture and turf equipment, and related service parts, including large, medium, and utility tractors; tractor loaders; combines, cotton pickers, cotton strippers, and sugarcane harvesters; related harvesting front-end equipment; sugarcane loaders and pull-behind scrapers; and tillage, seeding, and application equipment comprising sprayers, and nutrient management and soil preparation machinery. This segment also offers hay and forage equipment, such as self-propelled forage harvesters and attachments, balers, and mowers; turf and utility equipment, including riding lawn equipment and walk-behind mowers, golf course equipment, utility vehicles, and commercial mowing equipment, as well as associated implements; integrated agricultural management systems technology and solutions; and other outdoor power products. Its Construction and Forestry segment manufactures and distributes backhoe loaders; crawler dozers and loaders; four-wheel-drive loaders; excavators; motor graders; articulated dump trucks; landscape loaders; skid-steer loaders; and log skidders, loaders, forwarders, and harvesters, as well as feller bunchers and related attachments used in construction, earthmoving, material handling, and timber harvesting applications. The company's Financial Services segment finances sales and leases of new and used agriculture and turf equipment, and construction and forestry equipment. This segment also provides wholesale financing to dealers of the foregoing equipment; finances retail revolving charge accounts; and offers extended equipment warranties. It markets its products primarily through independent retail dealer networks and retail outlets. Deere & Company was founded in 1837 and is headquartered in Moline, Illinois.

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