AGCO Corporation (AGCO) vs Federal Signal Corporation (FSS)

AGCO Corporation and Federal Signal Corporation are both Farm & Heavy Construction Machinery companies. AGCO Corporation is the larger, with a market value of $8.1B against $6.9B — 1.2× the size. AGCO Corporation trades at the lower P/E: 16.3× against 24.5×. Federal Signal Corporation grew revenue faster over the last twelve months: 24.0% against 1.74%. Federal Signal Corporation has the higher net margin (11.7% vs 5.15%) and the higher return on invested capital (13.0% vs 6.05%). Both pay a dividend; AGCO Corporation yields more (5.07% vs 0.50%). Across the 23 metrics below, Federal Signal Corporation leads on 15 and AGCO Corporation on 8.

Valuation

Metric AGCO FSS Farm & Heavy Construction Machinery median
P/E 16.30 24.47 23.38
P/S 0.81 2.85 0.81
P/B 2.06 4.64 1.43
Price to free cash flow 25.31 20.60 25.31
EV/EBITDA 11.18 15.19 12.13
EV/Sales 1.02 3.01 1.20
Earnings yield 6.13% 4.09% 2.73%
Free cash flow yield 3.95% 4.85% 3.02%

Profitability

Metric AGCO FSS Farm & Heavy Construction Machinery median
Gross margin 25.27% 29.17% 24.21%
Operating margin 5.83% 16.15% 4.47%
Net margin 5.15% 11.66% 1.49%
Free cash flow margin 3.20% 13.86% 2.15%
Return on equity 12.93% 20.61% 4.16%
Return on assets 4.41% 13.10% 1.45%
Return on invested capital 6.05% 13.02% 3.36%

Growth

Metric AGCO FSS Farm & Heavy Construction Machinery median
Revenue growth (TTM) 1.74% 23.97% 2.18%
EPS growth (last fiscal year) 271.35% 14.57% —
Revenue growth, 5-year CAGR 1.96% 14.03% 7.34%
Net income growth, 5-year CAGR 11.21% 20.72% 0.00%

Health

Metric AGCO FSS Farm & Heavy Construction Machinery median
Debt to equity 0.67 0.30 0.67
Current ratio 1.32 2.74 1.98
Net debt to EBITDA 1.71 1.19 1.12

Dividend

Metric AGCO FSS Farm & Heavy Construction Machinery median
Dividend yield 5.07% 0.50% 1.45%
Payout ratio 0.07 0.17 0.08

Size

Metric AGCO FSS Farm & Heavy Construction Machinery median
Market cap 8.14b 6.88b 772.81m

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