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 $6.8B against $1.7B — 4.1× the size. Alamo Group, Inc. trades at the lower P/E: 21.2× against 23.0×. Federal Signal Corporation grew revenue faster over the last twelve months: 24.0% against 1.81%. Federal Signal Corporation has the higher net margin (11.7% vs 4.72%) and the higher return on invested capital (13.4% vs 5.99%). Both pay a dividend; Alamo Group, Inc. yields more (1.00% vs 0.53%). 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 21.17 23.02 21.67
P/S 1.00 2.69 0.77
P/B 1.38 4.34 1.31
Price to free cash flow 10.83 18.75 20.59
EV/EBITDA 7.99 14.16 11.30
EV/Sales 1.00 2.82 1.11
Earnings yield 4.72% 4.34% 3.08%
Free cash flow yield 9.23% 5.33% 3.12%

Profitability

Metric ALG FSS Farm & Heavy Construction Machinery median
Gross margin 22.91% 29.10% 22.91%
Operating margin 6.93% 16.20% 4.47%
Net margin 4.72% 11.65% 1.41%
Free cash flow margin 9.35% 14.33% 2.26%
Return on equity 6.70% 20.47% 3.99%
Return on assets 4.71% 13.52% 1.31%
Return on invested capital 5.99% 13.40% 4.09%

Growth

Metric ALG FSS Farm & Heavy Construction Machinery median
Revenue growth (TTM) 1.81% 23.99% 1.81%
EPS growth (last fiscal year) (10.80%) 14.57% (27.79%)
Revenue growth, 5-year CAGR 6.63% 14.03% 6.63%
Net income growth, 5-year CAGR 12.42% 20.72% 0.00%

Health

Metric ALG FSS Farm & Heavy Construction Machinery median
Debt to equity 0.20 0.27 0.66
Current ratio 4.19 2.97 1.98
Net debt to EBITDA (0.50) 1.19 1.12

Dividend

Metric ALG FSS Farm & Heavy Construction Machinery median
Dividend yield 1.00% 0.53% 1.24%
Payout ratio 0.21 0.12 0.31

Size

Metric ALG FSS Farm & Heavy Construction Machinery median
Market cap 1.66b 6.84b 836.63m

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