Alamo Group, Inc. (ALG) vs Hyster-Yale, Inc. (HY)

Alamo Group, Inc. and Hyster-Yale, Inc. are both Farm & Heavy Construction Machinery companies. Alamo Group, Inc. is the larger, with a market value of $1.9B against $552.6M — 3.5× the size. Hyster-Yale, Inc. has negative trailing earnings, so its P/E is not meaningful; Alamo Group, Inc. trades at 19.0×. Alamo Group, Inc. grew revenue faster over the last twelve months: 4.07% against −11.1%. Alamo Group, Inc. has the higher net margin (6.08% vs −3.33%) and the higher return on invested capital (7.37% vs −7.03%). Both pay a dividend; Hyster-Yale, Inc. yields more (1.88% vs 0.41%). Across the 21 metrics below, Alamo Group, Inc. leads on 17 and Hyster-Yale, Inc. on 4.

Valuation

Metric ALG HY Farm & Heavy Construction Machinery median
P/E 19.00 n/m 23.38
P/S 1.16 0.16 0.81
P/B 1.62 1.41 1.43
Price to free cash flow 13.90 33.12 25.31
EV/EBITDA 9.68 n/m 12.13
EV/Sales 1.20 0.25 1.20
Earnings yield 5.26% (21.12%) 2.73%
Free cash flow yield 7.19% 3.02% 3.02%

Profitability

Metric ALG HY Farm & Heavy Construction Machinery median
Gross margin 24.21% 15.36% 24.21%
Operating margin 8.91% (2.32%) 4.47%
Net margin 6.08% (3.33%) 1.49%
Free cash flow margin 8.46% 0.48% 2.15%
Return on equity 8.77% (24.80%) 4.16%
Return on assets 6.16% (5.84%) 1.45%
Return on invested capital 7.37% (7.03%) 3.36%

Growth

Metric ALG HY Farm & Heavy Construction Machinery median
Revenue growth (TTM) 4.07% (11.14%) 2.18%
EPS growth (last fiscal year) (10.80%) (142.29%) —
Revenue growth, 5-year CAGR 6.63% 6.03% 7.34%
Net income growth, 5-year CAGR 12.42% 0.00% 0.00%

Health

Metric ALG HY Farm & Heavy Construction Machinery median
Debt to equity 0.22 1.02 0.67
Current ratio 4.39 1.28 1.98
Net debt to EBITDA (0.50) 10.42 1.12

Dividend

Metric ALG HY Farm & Heavy Construction Machinery median
Dividend yield 0.41% 1.88% 1.45%
Payout ratio 0.08 0.64 0.08

Size

Metric ALG HY Farm & Heavy Construction Machinery median
Market cap 1.94b 552.62m 772.81m

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