Caterpillar Vs. Manitowoc: Which Farm & Heavy Construction Machinery Stock Is A Better Choice?

Thus, CAT is more profitable.

Valuation

In terms of forward EV/Sales, CAT is currently trading at 2.81x, which is 79.7% higher than MTW, which is currently trading at 0.57x. Also, CAT’s 16.23 forward EV/EBITDA ratio is 44.9% higher than MTW’s 8.94.

Thus, MTW is an affordable stock here.

POWR Ratings

CAT has an overall B rating, which equates to Buy in our proprietary POWR Ratings system. MTW, in contrast,  has an overall rating of C, which translates to Neutral. The POWR Ratings are calculated considering 118 distinct factors, with each factor weighted to an optimal degree.

Both stocks have a C grade for Momentum. This is justified because they are trading above their respective 50-day moving averages.

Among the 85 stocks in the A-rated Industrial – Machinery industry, CAT is ranked #29, while MTW is ranked #57.

Beyond what we’ve stated above, we have also rated the stocks for Sentiment, Stability, Quality, Value, and Growth. Click here to view CAT ratings. Also, get all MTW ratings here.

The Winner

As President Biden’s Build-Back-Better initiative takes shape with the Senate’s approval of the infrastructure bill, the heavy-construction industry is expected to garner significant revenues over an extended period. This should bode well for both stocks. However, we think CAT’s higher profit margins along with prominent growth prospects make it the better choice here.

Our research shows that odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. View all the top-rated stocks in the Industrial – Machinery industry here.

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CAT shares rose $0.18 (+0.08%) in after-hours trading Wednesday. Year-to-date, CAT has gained 23.64%, versus a 19.47% rise in the benchmark S&P 500 index during the same period.

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