Alamo Group, Inc. (ALG) vs CNH Industrial N.V. (CNH)

Alamo Group, Inc. and CNH Industrial N.V. are both Farm & Heavy Construction Machinery companies. CNH Industrial N.V. is the larger, with a market value of $16.4B against $1.9B — 8.5× the size. Alamo Group, Inc. trades at the lower P/E: 19.0× against 52.4×. Alamo Group, Inc. grew revenue faster over the last twelve months: 4.07% against 0.64%. Alamo Group, Inc. has the higher net margin (6.08% vs 1.71%) and the higher return on invested capital (7.37% vs 4.91%). Both pay a dividend; CNH Industrial N.V. yields more (2.73% vs 0.41%). Across the 23 metrics below, Alamo Group, Inc. leads on 18 and CNH Industrial N.V. on 5.

Valuation

Metric ALG CNH Farm & Heavy Construction Machinery median
P/E 19.00 52.36 23.38
P/S 1.16 0.89 0.81
P/B 1.62 2.08 1.43
Price to free cash flow 13.90 26.52 25.31
EV/EBITDA 9.68 12.76 12.13
EV/Sales 1.20 2.18 1.20
Earnings yield 5.26% 1.91% 2.73%
Free cash flow yield 7.19% 3.77% 3.02%

Profitability

Metric ALG CNH Farm & Heavy Construction Machinery median
Gross margin 24.21% 30.55% 24.21%
Operating margin 8.91% 13.52% 4.47%
Net margin 6.08% 1.71% 1.49%
Free cash flow margin 8.46% 3.36% 2.15%
Return on equity 8.77% 3.99% 4.16%
Return on assets 6.16% 0.72% 1.45%
Return on invested capital 7.37% 4.91% 3.36%

Growth

Metric ALG CNH Farm & Heavy Construction Machinery median
Revenue growth (TTM) 4.07% 0.64% 2.18%
EPS growth (last fiscal year) (10.80%) (58.59%) —
Revenue growth, 5-year CAGR 6.63% (7.02%) 7.34%
Net income growth, 5-year CAGR 12.42% 0.00% 0.00%

Health

Metric ALG CNH Farm & Heavy Construction Machinery median
Debt to equity 0.22 3.33 0.67
Current ratio 4.39 12.23 1.98
Net debt to EBITDA (0.50) 6.90 1.12

Dividend

Metric ALG CNH Farm & Heavy Construction Machinery median
Dividend yield 0.41% 2.73% 1.45%
Payout ratio 0.08 0.23 0.08

Size

Metric ALG CNH Farm & Heavy Construction Machinery median
Market cap 1.94b 16.44b 772.81m

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