Caterpillar and Garrett Motion Stand Out Amid Cash-Producing Peers
When it comes to successful businesses, generating cash is not enough, companies also need to reinvest wisely. Luckily for investors, StockStory has developed a platform that can help separate the good from the bad.
One company that may struggle to keep up with its peers is ZoomInfo (GTM). With a trailing 12-month free cash flow margin of 36.4%, ZoomInfo provides sales, marketing, and recruiting teams with business intelligence and analytics through its 'RevOS' platform. However, flat billings over the last year suggest that it may need to improve its products, pricing, or go-to-market strategy to reinvigorate demand.
On the other hand, two companies that excel at turning cash into shareholder value are Caterpillar (CAT) and Garrett Motion (GTX). With a trailing 12-month free cash flow margin of 14.2%, Caterpillar manufactures construction equipment like bulldozers and excavators, while Garrett Motion designs and manufactures turbochargers and electric motor technologies for vehicle manufacturers.
Caterpillar's offerings and unique value proposition resonate with customers, as seen in its above-market 10.2% annual sales growth over the last five years. Meanwhile, Garrett Motion has earned 44.4% average annual earnings per share growth over the last two years, surpassing its peers.
StockStory recommends that investors consider these companies for their portfolios and offers a free research report to learn more about Caterpillar and Garrett Motion.