AGCO Corporation (AGCO) vs Alamo Group, Inc. (ALG)

AGCO Corporation and Alamo Group, Inc. are both Farm & Heavy Construction Machinery companies. AGCO Corporation is the larger, with a market value of $8.1B against $1.9B — 4.2× the size. AGCO Corporation trades at the lower P/E: 16.3× against 19.0×. Alamo Group, Inc. grew revenue faster over the last twelve months: 4.07% against 1.74%. Alamo Group, Inc. has the higher net margin (6.08% vs 5.15%) and the higher return on invested capital (7.37% vs 6.05%). Both pay a dividend; AGCO Corporation yields more (5.07% vs 0.41%). Across the 23 metrics below, Alamo Group, Inc. leads on 15 and AGCO Corporation on 8.

Valuation

Metric AGCO ALG Farm & Heavy Construction Machinery median
P/E 16.30 19.00 23.38
P/S 0.81 1.16 0.81
P/B 2.06 1.62 1.43
Price to free cash flow 25.31 13.90 25.31
EV/EBITDA 11.18 9.68 12.13
EV/Sales 1.02 1.20 1.20
Earnings yield 6.13% 5.26% 2.73%
Free cash flow yield 3.95% 7.19% 3.02%

Profitability

Metric AGCO ALG Farm & Heavy Construction Machinery median
Gross margin 25.27% 24.21% 24.21%
Operating margin 5.83% 8.91% 4.47%
Net margin 5.15% 6.08% 1.49%
Free cash flow margin 3.20% 8.46% 2.15%
Return on equity 12.93% 8.77% 4.16%
Return on assets 4.41% 6.16% 1.45%
Return on invested capital 6.05% 7.37% 3.36%

Growth

Metric AGCO ALG Farm & Heavy Construction Machinery median
Revenue growth (TTM) 1.74% 4.07% 2.18%
EPS growth (last fiscal year) 271.35% (10.80%) —
Revenue growth, 5-year CAGR 1.96% 6.63% 7.34%
Net income growth, 5-year CAGR 11.21% 12.42% 0.00%

Health

Metric AGCO ALG Farm & Heavy Construction Machinery median
Debt to equity 0.67 0.22 0.67
Current ratio 1.32 4.39 1.98
Net debt to EBITDA 1.71 (0.50) 1.12

Dividend

Metric AGCO ALG Farm & Heavy Construction Machinery median
Dividend yield 5.07% 0.41% 1.45%
Payout ratio 0.07 0.08 0.08

Size

Metric AGCO ALG Farm & Heavy Construction Machinery median
Market cap 8.14b 1.94b 772.81m

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