AGCO Corporation (AGCO) vs Deere & Company (DE)

AGCO Corporation and Deere & Company are both Farm & Heavy Construction Machinery companies. Deere & Company is the larger, with a market value of $178.9B against $7.6B — 23.5× the size. AGCO Corporation trades at the lower P/E: 28.6× against 36.9×. Deere & Company grew revenue faster over the last twelve months: 7.99% against 0.86%. Deere & Company has the higher net margin (10.2% vs 2.76%) and the lower return on invested capital (4.93% vs 5.61%). Both pay a dividend; AGCO Corporation yields more (1.07% vs 0.97%). Across the 23 metrics below, Deere & Company leads on 12 and AGCO Corporation on 11.

Valuation

Metric AGCO DE Farm & Heavy Construction Machinery median
P/E 28.59 36.87 21.67
P/S 0.76 3.74 0.77
P/B 1.88 6.41 1.31
Price to free cash flow 25.97 22.42 20.59
EV/EBITDA 10.97 19.94 11.30
EV/Sales 0.98 4.86 1.11
Earnings yield 3.50% 2.71% 3.08%
Free cash flow yield 3.85% 4.46% 3.12%

Profitability

Metric AGCO DE Farm & Heavy Construction Machinery median
Gross margin 25.00% 36.59% 22.91%
Operating margin 5.61% 19.47% 4.47%
Net margin 2.76% 10.16% 1.41%
Free cash flow margin 2.91% 16.69% 2.26%
Return on equity 6.53% 18.33% 3.99%
Return on assets 2.31% 4.52% 1.31%
Return on invested capital 5.61% 4.93% 4.09%

Growth

Metric AGCO DE Farm & Heavy Construction Machinery median
Revenue growth (TTM) 0.86% 7.99% 1.81%
EPS growth (last fiscal year) 271.35% (27.79%) (27.79%)
Revenue growth, 5-year CAGR 1.96% 5.15% 6.63%
Net income growth, 5-year CAGR 11.21% 12.81% 0.00%

Health

Metric AGCO DE Farm & Heavy Construction Machinery median
Debt to equity 0.66 2.28 0.66
Current ratio 1.32 2.10 1.98
Net debt to EBITDA 1.71 4.65 1.12

Dividend

Metric AGCO DE Farm & Heavy Construction Machinery median
Dividend yield 1.07% 0.97% 1.24%
Payout ratio 0.31 0.36 0.31

Size

Metric AGCO DE Farm & Heavy Construction Machinery median
Market cap 7.60b 178.85b 836.63m

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