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 $338.2B against $7.4B — 45.5× the size. AGCO Corporation trades at the lower P/E: 14.3× against 31.2×. 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 (1.14% vs 0.84%). 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 14.33 31.23 23.28
P/S 0.71 4.49 0.75
P/B 1.81 17.32 1.43
Price to free cash flow 22.25 34.37 22.25
EV/EBITDA 10.10 22.18 11.41
EV/Sales 0.92 5.01 1.14
Earnings yield 6.98% 3.20% 2.83%
Free cash flow yield 4.50% 2.91% 2.91%

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% 3.99%
Return on assets 4.41% 11.24% 1.31%
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%) (27.79%)
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 1.14% 0.84% 1.34%
Payout ratio 0.16 0.27 0.30

Size

Metric AGCO CAT Farm & Heavy Construction Machinery median
Market cap 7.44b 338.16b 808.87m

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