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 $338.2B against $1.9B — 181.8× the size. Alamo Group, Inc. trades at the lower P/E: 18.0× against 31.2×. 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; Alamo Group, Inc. yields more (0.90% vs 0.84%). Across the 23 metrics below, Alamo Group, Inc. leads on 13 and Caterpillar Inc. on 10.

Valuation

Metric ALG CAT Farm & Heavy Construction Machinery median
P/E 17.96 31.23 23.28
P/S 1.09 4.49 0.75
P/B 1.53 17.32 1.43
Price to free cash flow 13.13 34.37 22.25
EV/EBITDA 9.16 22.18 11.41
EV/Sales 1.14 5.01 1.14
Earnings yield 5.57% 3.20% 2.83%
Free cash flow yield 7.61% 2.91% 2.91%

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% 3.99%
Return on assets 6.16% 11.24% 1.31%
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%) (27.79%)
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 0.90% 0.84% 1.34%
Payout ratio 0.16 0.27 0.30

Size

Metric ALG CAT Farm & Heavy Construction Machinery median
Market cap 1.86b 338.16b 808.87m

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