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 $373.2B against $8.1B — 45.8× the size. AGCO Corporation trades at the lower P/E: 16.3× against 35.2×. Caterpillar Inc. grew revenue faster over the last twelve months: 18.4% against 1.74%. Caterpillar Inc. has the higher net margin (14.5% vs 5.15%) and the higher return on invested capital (14.2% vs 6.05%). Both pay a dividend; AGCO Corporation yields more (5.07% vs 1.69%). Across the 23 metrics below, AGCO Corporation leads on 12 and Caterpillar Inc. on 11.

Valuation

Metric AGCO CAT Farm & Heavy Construction Machinery median
P/E 16.30 35.17 23.38
P/S 0.81 5.06 0.81
P/B 2.06 19.50 1.43
Price to free cash flow 25.31 38.70 25.31
EV/EBITDA 11.18 24.69 12.13
EV/Sales 1.02 5.58 1.20
Earnings yield 6.13% 2.84% 2.73%
Free cash flow yield 3.95% 2.58% 3.02%

Profitability

Metric AGCO CAT Farm & Heavy Construction Machinery median
Gross margin 25.27% 34.34% 24.21%
Operating margin 5.83% 19.40% 4.47%
Net margin 5.15% 14.51% 1.49%
Free cash flow margin 3.20% 13.08% 2.15%
Return on equity 12.93% 56.99% 4.16%
Return on assets 4.41% 11.24% 1.45%
Return on invested capital 6.05% 14.15% 3.36%

Growth

Metric AGCO CAT Farm & Heavy Construction Machinery median
Revenue growth (TTM) 1.74% 18.36% 2.18%
EPS growth (last fiscal year) 271.35% (14.69%) —
Revenue growth, 5-year CAGR 1.96% 10.12% 7.34%
Net income growth, 5-year CAGR 11.21% 24.27% 0.00%

Health

Metric AGCO CAT Farm & Heavy Construction Machinery median
Debt to equity 0.67 2.33 0.67
Current ratio 1.32 1.37 1.98
Net debt to EBITDA 1.71 2.26 1.12

Dividend

Metric AGCO CAT Farm & Heavy Construction Machinery median
Dividend yield 5.07% 1.69% 1.45%
Payout ratio 0.07 0.33 0.08

Size

Metric AGCO CAT Farm & Heavy Construction Machinery median
Market cap 8.14b 373.15b 772.81m

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