Greenland Technologies vs. Caterpillar: Which Heavy Equipment Stock is a Better Buy?
StockNews
Published Nov 22, 2021 01:15PM ET
Updated Nov 22, 2021 02:31PM ET
Greenland Technologies vs. Caterpillar: Which Heavy Equipment Stock is a Better Buy?
The resumption of various industrial and construction activities has increased the demand for heavy equipment and related engines and parts. Therefore, we think Caterpillar (CAT) and Greenland Technologies (GTEC) should benefit. But which of these stocks is a better buy now? Read more to find out.Caterpillar Inc. (NYSE:CAT) and Greenland Technologies Holding Corporation (GTEC) are two prominent players in the heavy equipment space. CAT, which is headquartered in Peoria, Ill., designs, manufactures, and sells construction, mining, forestry machinery, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. The company also manufactures other related parts for its equipment, offers financing and insurance, and distributes its products through dealers. In comparison, Hangzhou, China-based GTEC develops and manufactures transmission and drivetrain systems for material handling machinery, EVs, electric industrial vehicles, and robotic cargo carriers internationally. The company offers transmission products for forklift trucks used in manufacturing and logistic applications, such as factories, workshops, warehouses, fulfillment centers, shipyards, and seaports.
Rising demand for advanced, autonomous, and electric machinery, engines, and supplies, owing to the resumption of economic activities and huge spending on renovation, is driving the heavy equipment market’s growth. Also, the passage of a $1 trillion bipartisan infrastructure bill by Congress should drive growth for heavy machinery manufacturing companies in the coming months. The global heavy equipment market is expected to grow at a 3.2% CAGR to $620.39 billion by 2027. So, both CAT and GTEC should benefit.
While CAT’s shares have gained 10.1% in price year-to-date, GTEC has surged 36.6%. GTEC is a clear winner with 106% gains versus CAT’s 15.9% in terms of their past year’s performance. But which of these stocks is a better pick now? Let us find out.
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