Three Industrials Compared

I'm usually loath to do any stock picking publicly as it could be construed as some kind of investment advice, which I never provide. Never. Not even when I'm in a good mood.

Anyway, that said, I thought it useful to compare three industrials. Some you may have heard of, others you may not have. They're all great companies but any investor had better have their eyes wide open when buying shares in them.

1. Caterpillar (NYSE: CAT)

They're a good dividend payer but sales have been lagging which may impact their ability to buy back shares and pay dividends in future. The sector is undergoing a recession, and CAT have begun restructuring - long overdue. 

They're the main brand of construction equipment worldwide, with loyal customers, often said to have CAT yellow coloured blood in their veins. They're strong in infrastructure, so if you think your government is going to spend on roads and bridges, then these guys win from that activity.

Currently their share price is falling, and getting cheaper by the day. They're now in the buy category. You buy and hold these shares, never sell them. Why would you?

2. Joy Global (NYSE:JOY)

I often see Joy Global mentioned alongside CAT. Don't be fooled though, they're not nearly as big and rarely a direct competitor. Joy's main line is underground mining equipment and surface mining equipment such as face shovels and draglines, along with breakers, blast hole drills and assorted items.

They're losing money right now. If you're a risk taker then they're worth a look. Problem is though they're exposed to industries that are cyclical and right now those industries are in the doldrums. This company will take a while to come right.

3. John Deere - Deere & Company (NYSE:DE)

A competitor for CAT and also into Agriculture and Turf. A solid performer but without quite the loyalty of CAT customers, the reputation or the global reach. They're no longer as cheap relative to earnings as CAT which is kind of interesting. They're not as big a dividend payer. Like the other two, sales and earnings are declining.  They're a solid company though, it's hard to imagine you losing your money.

(Note: These opinions constitute information only and do not constitute investment advice. If you need investment advice on these stocks or anything else for that matter, talk to your recognised and professional investment adviser. Better still, do your own research and act on it confident in your own ability.)