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DE vs ETN

DE
Deere & Company
BEARISH
Price
$578.76
Market Cap
$156.33B
Sector
Industrials
AI Confidence
75%
ETN
Eaton Corporation plc
BULLISH
Price
$352.39
Market Cap
$137.52B
Sector
Industrials
AI Confidence
88%

Valuation

P/E Ratio
DE
32.62
ETN
35.34
Forward P/E
DE
24.94
ETN
29.24
P/B Ratio
DE
5.94
ETN
7.26
P/S Ratio
DE
3.35
ETN
5.16
EV/EBITDA
DE
24.47
ETN
24.14

Profitability

Gross Margin
DE
26.25%
ETN
38.27%
Operating Margin
DE
9.27%
ETN
19.78%
Profit Margin
DE
10.3%
ETN
14.74%
ROE
DE
19.57%
ETN
20.65%
ROA
DE
3.96%
ETN
8.03%

Growth

Revenue Growth
DE
13.0%
ETN
10.1%
Earnings Growth
DE
-24.1%
ETN
2.4%

Financial Health

Debt/Equity
DE
2.4
ETN
0.6
Current Ratio
DE
2.25
ETN
1.28
Quick Ratio
DE
1.99
ETN
0.71

Dividends

Dividend Yield
DE
1.15%
ETN
1.18%
Payout Ratio
DE
36.55%
ETN
40.64%

AI Verdict

DE BEARISH

DE shows bearish fundamentals based on deterministic rules. Financial strength is stable (F-Score 4/9). Concerns include weak profitability or high valuation.

Strengths
Strong ROE of 19.6%
Risks
High valuation with P/E of 32.6
Premium vs Graham Number ($197.14)
High debt burden with D/E of 2.40
ETN BULLISH

Eaton Corporation (ETN) exhibits strong fundamental quality with consistent earnings outperformance, robust profitability, and a resilient growth trajectory despite near-term macro headwinds. The stock trades at a premium valuation (P/E 35.35 vs sector 26.18), justified by superior margin profile (19.78% operating margin) and reliable execution, as evidenced by 24 of the last 25 quarters beating EPS estimates. While insider selling raises a minor concern, the overwhelming analyst consensus (24 analysts, Buy rating) and strong long-term price momentum (225.4% over 5Y) support continued outperformance. Relative to peers like HON and DE, ETN demonstrates better earnings stability and capital efficiency, positioning it well for structural tailwinds in electrification and industrial automation.

Strengths
Consistent earnings beat streak: 24 of last 25 quarters beat EPS estimates, with 10+ consecutive quarters of positive surprises exceeding 0.5%
Superior profitability: 19.78% operating margin and 14.74% net margin significantly above sector averages of 11.10%
High return on equity: 20.65% ROE, reflecting efficient capital allocation despite lower leverage than peers
Risks
Rich valuation: P/E of 35.35 is 35% above sector average (26.18), increasing sensitivity to growth deceleration
Insider selling: Recent $5.74M sale by an officer signals lack of near-term confidence despite strong fundamentals
Elevated price-to-book: 7.26x vs sector median, suggesting potential overvaluation if ROE regresses

Compare Another Pair

DE vs ETN: Head-to-Head Comparison

This page compares Deere & Company (DE) and Eaton Corporation plc (ETN) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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