PACCAR Inc vs TOYOTA MOTOR CORP/, two Auto Manufacturers stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Toyota and PACCAR are both disciplined, profitable vehicle makers, one in passenger cars and one in heavy trucks, but the market prices them very differently: Toyota at 7.17 times earnings, PACCAR at 25.7. Toyota earns the higher net margin, 9.97% against 8.91%, and return on equity, 13% against 12.5%, near-matched on both, yet trades at less than a third of PACCAR's multiple. Both run debt-free (ex-finance). Toyota yields more free cash, 10.8% against 5.89%. The pair prices a global car giant against a heavy-truck specialist; their profitability is remarkably similar, but Toyota trades cheap on Japanese-auto sentiment while PACCAR commands a US-industrial premium, making Toyota the clear value on nearly matched economics.
Comparison updated 2026-07-11.
| Metric | PCAR | TM |
|---|---|---|
| Price | $120.75 | $171.77 |
| Market cap | $63.7B | $227.6B |
| Sector | Auto Manufacturers | Auto Manufacturers |
| Stage | Mature | Growth |
| Implied growth (priced in) | +23.3% | — |
| P/E | 25.7 | 7.2 |
| P/B | 3.22 | 0.93 |
| P/S | 2.29 | 0.71 |
| EV/EBITDA | 77.4 | 3.6 |
| Revenue growth | -14.0% | +15.4% |
| Operating margin | — | 10.0% |
| Net margin | 8.9% | 10.0% |
| Return on equity | 12.5% | 13.0% |
| Return on assets | 5.7% | 5.1% |
| Return on invested capital | — | 9.7% |
| FCF yield | 5.9% | 10.8% |
| Dividend yield | 2.3% | 8.5% |
| Debt / equity | 0.00 | 0.00 |
| Current ratio | — | 1.26 |
| Altman Z (solvency) | 7.25 | 1.68 |
| Piotroski F (quality) | 8 / 9 | 6 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.