AGCO Corporation (AGCO) vs Terex Corporation (TEX)

AGCO Corporation and Terex Corporation are both Farm & Heavy Construction Machinery companies. AGCO Corporation is the larger, with a market value of $7.6B against $6.1B — 1.2× the size. Terex Corporation trades at the lower P/E: 27.3× against 28.6×. Terex Corporation grew revenue faster over the last twelve months: 40.1% against 0.86%. AGCO Corporation has the higher net margin (2.76% vs 2.64%) and the higher return on invested capital (5.61% vs 3.73%). Both pay a dividend; Terex Corporation yields more (1.24% vs 1.07%). Across the 23 metrics below, Terex Corporation leads on 13 and AGCO Corporation on 10.

Valuation

Metric AGCO TEX Farm & Heavy Construction Machinery median
P/E 28.57 27.31 21.83
P/S 0.76 0.83 0.77
P/B 1.88 1.25 1.33
Price to free cash flow 25.95 14.71 20.77
EV/EBITDA 10.96 11.70 11.43
EV/Sales 0.98 1.12 1.10
Earnings yield 3.50% 3.66% 3.03%
Free cash flow yield 3.85% 6.80% 3.15%

Profitability

Metric AGCO TEX Farm & Heavy Construction Machinery median
Gross margin 25.00% 17.12% 22.91%
Operating margin 5.61% 5.68% 4.47%
Net margin 2.76% 2.64% 1.41%
Free cash flow margin 2.91% 5.64% 2.26%
Return on equity 6.53% 5.68% 3.99%
Return on assets 2.31% 2.41% 1.31%
Return on invested capital 5.61% 3.73% 3.73%

Growth

Metric AGCO TEX Farm & Heavy Construction Machinery median
Revenue growth (TTM) 0.86% 40.10% 1.81%
EPS growth (last fiscal year) 271.35% (32.86%) (27.79%)
Revenue growth, 5-year CAGR 1.96% 12.00% 6.63%
Net income growth, 5-year CAGR 11.21% 0.00% 0.00%

Health

Metric AGCO TEX Farm & Heavy Construction Machinery median
Debt to equity 0.66 0.52 0.66
Current ratio 1.32 1.76 1.98
Net debt to EBITDA 1.71 2.86 1.12

Dividend

Metric AGCO TEX Farm & Heavy Construction Machinery median
Dividend yield 1.07% 1.24% 1.24%
Payout ratio 0.31 0.34 0.31

Size

Metric AGCO TEX Farm & Heavy Construction Machinery median
Market cap 7.60b 6.13b 781.47m

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