Alamo Group, Inc. (ALG) vs Caterpillar Inc. (CAT)

Alamo Group, Inc. and Caterpillar Inc. are both Farm & Heavy Construction Machinery companies. Caterpillar Inc. is the larger, with a market value of $373.2B against $1.9B — 192.3× the size. Alamo Group, Inc. trades at the lower P/E: 19.0× against 35.2×. Caterpillar Inc. grew revenue faster over the last twelve months: 18.4% against 4.07%. Caterpillar Inc. has the higher net margin (14.5% vs 6.08%) and the higher return on invested capital (14.2% vs 7.37%). Both pay a dividend; Caterpillar Inc. yields more (1.69% vs 0.41%). Across the 23 metrics below, Alamo Group, Inc. leads on 12 and Caterpillar Inc. on 11.

Valuation

Metric ALG CAT Farm & Heavy Construction Machinery median
P/E 19.00 35.17 23.38
P/S 1.16 5.06 0.81
P/B 1.62 19.50 1.43
Price to free cash flow 13.90 38.70 25.31
EV/EBITDA 9.68 24.69 12.13
EV/Sales 1.20 5.58 1.20
Earnings yield 5.26% 2.84% 2.73%
Free cash flow yield 7.19% 2.58% 3.02%

Profitability

Metric ALG CAT Farm & Heavy Construction Machinery median
Gross margin 24.21% 34.34% 24.21%
Operating margin 8.91% 19.40% 4.47%
Net margin 6.08% 14.51% 1.49%
Free cash flow margin 8.46% 13.08% 2.15%
Return on equity 8.77% 56.99% 4.16%
Return on assets 6.16% 11.24% 1.45%
Return on invested capital 7.37% 14.15% 3.36%

Growth

Metric ALG CAT Farm & Heavy Construction Machinery median
Revenue growth (TTM) 4.07% 18.36% 2.18%
EPS growth (last fiscal year) (10.80%) (14.69%) —
Revenue growth, 5-year CAGR 6.63% 10.12% 7.34%
Net income growth, 5-year CAGR 12.42% 24.27% 0.00%

Health

Metric ALG CAT Farm & Heavy Construction Machinery median
Debt to equity 0.22 2.33 0.67
Current ratio 4.39 1.37 1.98
Net debt to EBITDA (0.50) 2.26 1.12

Dividend

Metric ALG CAT Farm & Heavy Construction Machinery median
Dividend yield 0.41% 1.69% 1.45%
Payout ratio 0.08 0.33 0.08

Size

Metric ALG CAT Farm & Heavy Construction Machinery median
Market cap 1.94b 373.15b 772.81m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack