Alamo Group, Inc. (ALG) vs Deere & Company (DE)

Alamo Group, Inc. and Deere & Company are both Farm & Heavy Construction Machinery companies. Deere & Company is the larger, with a market value of $175.4B against $1.9B — 94.3× the size. Alamo Group, Inc. trades at the lower P/E: 18.0× against 35.6×. Deere & Company grew revenue faster over the last twelve months: 7.99% against 4.07%. Deere & Company has the higher net margin (10.2% vs 6.08%) and the lower return on invested capital (4.93% vs 7.37%). Both pay a dividend; Deere & Company yields more (1.01% vs 0.90%). Across the 23 metrics below, Alamo Group, Inc. leads on 15 and Deere & Company on 8.

Valuation

Metric ALG DE Farm & Heavy Construction Machinery median
P/E 17.96 35.56 23.28
P/S 1.09 3.61 0.75
P/B 1.53 6.19 1.43
Price to free cash flow 13.13 21.62 22.25
EV/EBITDA 9.16 19.40 11.41
EV/Sales 1.14 4.73 1.14
Earnings yield 5.57% 2.81% 2.83%
Free cash flow yield 7.61% 4.62% 2.91%

Profitability

Metric ALG DE Farm & Heavy Construction Machinery median
Gross margin 24.21% 36.59% 24.21%
Operating margin 8.91% 19.47% 4.47%
Net margin 6.08% 10.16% 1.49%
Free cash flow margin 8.46% 16.69% 2.15%
Return on equity 8.77% 18.33% 3.99%
Return on assets 6.16% 4.52% 1.31%
Return on invested capital 7.37% 4.93% 3.36%

Growth

Metric ALG DE Farm & Heavy Construction Machinery median
Revenue growth (TTM) 4.07% 7.99% 2.18%
EPS growth (last fiscal year) (10.80%) (27.79%) (27.79%)
Revenue growth, 5-year CAGR 6.63% 5.15% 7.34%
Net income growth, 5-year CAGR 12.42% 12.81% 0.00%

Health

Metric ALG DE Farm & Heavy Construction Machinery median
Debt to equity 0.22 2.28 0.67
Current ratio 4.39 2.10 1.98
Net debt to EBITDA (0.50) 4.65 1.12

Dividend

Metric ALG DE Farm & Heavy Construction Machinery median
Dividend yield 0.90% 1.01% 1.34%
Payout ratio 0.16 0.36 0.30

Size

Metric ALG DE Farm & Heavy Construction Machinery median
Market cap 1.86b 175.44b 808.87m

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