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 $187.7B against $8.1B — 23.1× the size. AGCO Corporation trades at the lower P/E: 16.3× against 38.3×. Deere & Company grew revenue faster over the last twelve months: 7.99% against 1.74%. Deere & Company has the higher net margin (10.2% vs 5.15%) and the lower return on invested capital (4.93% vs 6.05%). Both pay a dividend; AGCO Corporation yields more (5.07% vs 1.43%). 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 16.30 38.25 23.38
P/S 0.81 3.88 0.81
P/B 2.06 6.65 1.43
Price to free cash flow 25.31 23.26 25.31
EV/EBITDA 11.18 20.52 12.13
EV/Sales 1.02 5.00 1.20
Earnings yield 6.13% 2.61% 2.73%
Free cash flow yield 3.95% 4.30% 3.02%

Profitability

Metric AGCO DE Farm & Heavy Construction Machinery median
Gross margin 25.27% 36.59% 24.21%
Operating margin 5.83% 19.47% 4.47%
Net margin 5.15% 10.16% 1.49%
Free cash flow margin 3.20% 16.69% 2.15%
Return on equity 12.93% 18.33% 4.16%
Return on assets 4.41% 4.52% 1.45%
Return on invested capital 6.05% 4.93% 3.36%

Growth

Metric AGCO DE Farm & Heavy Construction Machinery median
Revenue growth (TTM) 1.74% 7.99% 2.18%
EPS growth (last fiscal year) 271.35% (27.79%) —
Revenue growth, 5-year CAGR 1.96% 5.15% 7.34%
Net income growth, 5-year CAGR 11.21% 12.81% 0.00%

Health

Metric AGCO DE Farm & Heavy Construction Machinery median
Debt to equity 0.67 2.28 0.67
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 5.07% 1.43% 1.45%
Payout ratio 0.07 0.14 0.08

Size

Metric AGCO DE Farm & Heavy Construction Machinery median
Market cap 8.14b 187.72b 772.81m

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