AGCO Corporation (AGCO) vs Caterpillar Inc. (CAT)

AGCO Corporation and Caterpillar Inc. are both Farm & Heavy Construction Machinery companies. Caterpillar Inc. is the larger, with a market value of $254.5B against $7.6B — 33.5× the size. Caterpillar Inc. trades at the lower P/E: 21.7× against 28.6×. Caterpillar Inc. grew revenue faster over the last twelve months: 20.3% against 0.86%. Caterpillar Inc. has the higher net margin (15.2% vs 2.76%) and the higher return on invested capital (15.2% vs 5.61%). Both pay a dividend; Caterpillar Inc. yields more (1.13% vs 1.07%). Across the 23 metrics below, Caterpillar Inc. leads on 16 and AGCO Corporation on 7.

Valuation

Metric AGCO CAT Farm & Heavy Construction Machinery median
P/E 28.59 21.67 21.67
P/S 0.76 3.28 0.77
P/B 1.88 11.86 1.31
Price to free cash flow 25.97 24.14 20.59
EV/EBITDA 10.97 17.31 11.30
EV/Sales 0.98 3.76 1.11
Earnings yield 3.50% 4.61% 3.08%
Free cash flow yield 3.85% 4.14% 3.12%

Profitability

Metric AGCO CAT Farm & Heavy Construction Machinery median
Gross margin 25.00% 34.78% 22.91%
Operating margin 5.61% 20.18% 4.47%
Net margin 2.76% 15.21% 1.41%
Free cash flow margin 2.91% 13.57% 2.26%
Return on equity 6.53% 56.15% 3.99%
Return on assets 2.31% 11.80% 1.31%
Return on invested capital 5.61% 15.16% 4.09%

Growth

Metric AGCO CAT Farm & Heavy Construction Machinery median
Revenue growth (TTM) 0.86% 20.26% 1.81%
EPS growth (last fiscal year) 271.35% (14.69%) (27.79%)
Revenue growth, 5-year CAGR 1.96% 10.12% 6.63%
Net income growth, 5-year CAGR 11.21% 24.27% 0.00%

Health

Metric AGCO CAT Farm & Heavy Construction Machinery median
Debt to equity 0.66 2.10 0.66
Current ratio 1.32 1.42 1.98
Net debt to EBITDA 1.71 2.26 1.12

Dividend

Metric AGCO CAT Farm & Heavy Construction Machinery median
Dividend yield 1.07% 1.13% 1.24%
Payout ratio 0.31 0.25 0.31

Size

Metric AGCO CAT Farm & Heavy Construction Machinery median
Market cap 7.60b 254.49b 836.63m

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