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 $7.6B against $6.8B — 1.1× the size. Federal Signal Corporation trades at the lower P/E: 23.0× against 28.6×. Federal Signal Corporation grew revenue faster over the last twelve months: 24.0% against 0.86%. Federal Signal Corporation has the higher net margin (11.7% vs 2.76%) and the higher return on invested capital (13.4% vs 5.61%). Both pay a dividend; AGCO Corporation yields more (1.07% vs 0.53%). Across the 23 metrics below, Federal Signal Corporation leads on 17 and AGCO Corporation on 6.

Valuation

Metric AGCO FSS Farm & Heavy Construction Machinery median
P/E 28.59 23.02 21.67
P/S 0.76 2.69 0.77
P/B 1.88 4.34 1.31
Price to free cash flow 25.97 18.75 20.59
EV/EBITDA 10.97 14.16 11.30
EV/Sales 0.98 2.82 1.11
Earnings yield 3.50% 4.34% 3.08%
Free cash flow yield 3.85% 5.33% 3.12%

Profitability

Metric AGCO FSS Farm & Heavy Construction Machinery median
Gross margin 25.00% 29.10% 22.91%
Operating margin 5.61% 16.20% 4.47%
Net margin 2.76% 11.65% 1.41%
Free cash flow margin 2.91% 14.33% 2.26%
Return on equity 6.53% 20.47% 3.99%
Return on assets 2.31% 13.52% 1.31%
Return on invested capital 5.61% 13.40% 4.09%

Growth

Metric AGCO FSS Farm & Heavy Construction Machinery median
Revenue growth (TTM) 0.86% 23.99% 1.81%
EPS growth (last fiscal year) 271.35% 14.57% (27.79%)
Revenue growth, 5-year CAGR 1.96% 14.03% 6.63%
Net income growth, 5-year CAGR 11.21% 20.72% 0.00%

Health

Metric AGCO FSS Farm & Heavy Construction Machinery median
Debt to equity 0.66 0.27 0.66
Current ratio 1.32 2.97 1.98
Net debt to EBITDA 1.71 1.19 1.12

Dividend

Metric AGCO FSS Farm & Heavy Construction Machinery median
Dividend yield 1.07% 0.53% 1.24%
Payout ratio 0.31 0.12 0.31

Size

Metric AGCO FSS Farm & Heavy Construction Machinery median
Market cap 7.60b 6.84b 836.63m

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