Alamo Group, Inc. (ALG) vs Federal Signal Corporation (FSS)

Alamo Group, Inc. and Federal Signal Corporation are both Farm & Heavy Construction Machinery companies. Federal Signal Corporation is the larger, with a market value of $6.9B against $1.9B — 3.7× the size. Alamo Group, Inc. trades at the lower P/E: 18.0× against 24.0×. Federal Signal Corporation grew revenue faster over the last twelve months: 24.0% against 4.07%. Federal Signal Corporation has the higher net margin (11.7% vs 6.08%) and the higher return on invested capital (13.0% vs 7.37%). Both pay a dividend; Alamo Group, Inc. yields more (0.90% vs 0.52%). Across the 23 metrics below, Alamo Group, Inc. leads on 12 and Federal Signal Corporation on 11.

Valuation

Metric ALG FSS Farm & Heavy Construction Machinery median
P/E 17.96 23.96 23.28
P/S 1.09 2.80 0.75
P/B 1.53 4.54 1.43
Price to free cash flow 13.13 20.18 22.25
EV/EBITDA 9.16 14.90 11.41
EV/Sales 1.14 2.96 1.14
Earnings yield 5.57% 4.17% 2.83%
Free cash flow yield 7.61% 4.96% 2.91%

Profitability

Metric ALG FSS Farm & Heavy Construction Machinery median
Gross margin 24.21% 29.17% 24.21%
Operating margin 8.91% 16.15% 4.47%
Net margin 6.08% 11.66% 1.49%
Free cash flow margin 8.46% 13.86% 2.15%
Return on equity 8.77% 20.61% 3.99%
Return on assets 6.16% 13.10% 1.31%
Return on invested capital 7.37% 13.02% 3.36%

Growth

Metric ALG FSS Farm & Heavy Construction Machinery median
Revenue growth (TTM) 4.07% 23.97% 2.18%
EPS growth (last fiscal year) (10.80%) 14.57% (27.79%)
Revenue growth, 5-year CAGR 6.63% 14.03% 7.34%
Net income growth, 5-year CAGR 12.42% 20.72% 0.00%

Health

Metric ALG FSS Farm & Heavy Construction Machinery median
Debt to equity 0.22 0.30 0.67
Current ratio 4.39 2.74 1.98
Net debt to EBITDA (0.50) 1.19 1.12

Dividend

Metric ALG FSS Farm & Heavy Construction Machinery median
Dividend yield 0.90% 0.52% 1.34%
Payout ratio 0.16 0.13 0.30

Size

Metric ALG FSS Farm & Heavy Construction Machinery median
Market cap 1.86b 6.93b 808.87m

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