Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK ( TheStreet) -- The stock market is all about risk and reward, Jim Cramer said on "Mad Money" Wednesday.
Cramer explained that Caterpillar shares continue to slide thanks, in part, to weakened iron ore and mineral demand world wide. While the company's construction business is picking up, its mining equipment business continues to pull down the entire company, which caused yet another analyst downgrade for CAT earlier today. Shares now trade at just nine times earning and yield 2.5%.
Compare that to ConAgra, said Cramer, which trades at 14 times earnings with a 2.9% yield. While CAT continues to fall, raising its yield, ConAgra shares continue to climb, thereby lowering its yield. While CAT suffers from falling commodity prices, ConAgra benefits from lower food and packaging costs.So which stock is the better buy? Cramer said ConAgra lets its shareholders sleep at night, while Caterpillar may still have further to fall. There may not be a lot of upside left in ConAgra, but the risk in CAT far exceeds the lack of rewards in ConAgra. He advised sticking with ConAgra for now and waiting for the bottom in CAT to materialize.