Will big industrial companies fare better than the smaller, more nimble ones? We’ve picked four industrial giants to look at:

Caterpillar Inc. (CAT): Shares are trading at $87.95 at the time of writing, in the middle of their 52-week trading range of $63.92 to $116.55. At the current market price, the company is capitalized at $56.82 billion. Earnings per share for the last year were $6.05, putting it on a price to earnings ratio of 14.55. It paid a dividend of $1.84 (a yield of 2.20%).

First, is the industry sector in which the company operates a good one? The world always needs food, and as its population grows, growing and harvesting methods will have to advance to better cope. With gold, silver and other metals at highs, there will be a need for mining companies to invest in mining equipment. Caterpillar serves both these markets with its equipment and engine manufacturing. The one potential cloud is the construction industry, which may be sluggish over the coming few years if analyst warnings are anything to go by. Comparing it to Deere (DE), the primary market ratings numbers – price to earnings (13.02), dividend yield (2.20%) – stack up very similarly. Deere leads Caterpillar in agricultural equipment, but has no diversification away from this. In my view this gives Caterpillar the edge, and with chances of seeing the share price move up toward its 12 month high.

Monsanto Company (MON): Shares are trading at $70.76 at the time of writing, at the upper end of their 52-week trading range of $47.07 to $77.09. To continue reading, click here.