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 $8.1B against $6.5B — 1.3× the size. AGCO Corporation trades at the lower P/E: 16.3× against 28.8×. Terex Corporation grew revenue faster over the last twelve months: 29.2% against 1.74%. AGCO Corporation has the higher net margin (5.15% vs 2.23%) and the higher return on invested capital (6.05% vs 3.31%). Both pay a dividend; AGCO Corporation yields more (5.07% vs 1.02%). Across the 23 metrics below, AGCO Corporation leads on 15 and Terex Corporation on 8.

Valuation

Metric AGCO TEX Farm & Heavy Construction Machinery median
P/E 16.30 28.81 23.38
P/S 0.81 0.98 0.81
P/B 2.06 1.32 1.43
Price to free cash flow 25.31 19.04 25.31
EV/EBITDA 11.18 14.09 12.13
EV/Sales 1.02 1.32 1.20
Earnings yield 6.13% 3.47% 2.73%
Free cash flow yield 3.95% 5.25% 3.02%

Profitability

Metric AGCO TEX Farm & Heavy Construction Machinery median
Gross margin 25.27% 17.16% 24.21%
Operating margin 5.83% 5.72% 4.47%
Net margin 5.15% 2.23% 1.49%
Free cash flow margin 3.20% 5.12% 2.15%
Return on equity 12.93% 4.33% 4.16%
Return on assets 4.41% 1.81% 1.45%
Return on invested capital 6.05% 3.31% 3.36%

Growth

Metric AGCO TEX Farm & Heavy Construction Machinery median
Revenue growth (TTM) 1.74% 29.17% 2.18%
EPS growth (last fiscal year) 271.35% (32.86%) —
Revenue growth, 5-year CAGR 1.96% 12.00% 7.34%
Net income growth, 5-year CAGR 11.21% 0.00% 0.00%

Health

Metric AGCO TEX Farm & Heavy Construction Machinery median
Debt to equity 0.67 0.55 0.67
Current ratio 1.32 1.82 1.98
Net debt to EBITDA 1.71 2.86 1.12

Dividend

Metric AGCO TEX Farm & Heavy Construction Machinery median
Dividend yield 5.07% 1.02% 1.45%
Payout ratio 0.07 0.09 0.08

Size

Metric AGCO TEX Farm & Heavy Construction Machinery median
Market cap 8.14b 6.47b 772.81m

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