Alamo Group, Inc. (ALG) vs Lindsay Corporation (LNN)

Alamo Group, Inc. and Lindsay Corporation are both Farm & Heavy Construction Machinery companies. Alamo Group, Inc. is the larger, with a market value of $1.9B against $1.1B — 1.7× the size. Alamo Group, Inc. trades at the lower P/E: 19.0× against 21.8×. Alamo Group, Inc. grew revenue faster over the last twelve months: 4.07% against −7.37%. Lindsay Corporation has the higher net margin (8.79% vs 6.08%) and the higher return on invested capital (8.50% vs 7.37%). Both pay a dividend; Lindsay Corporation yields more (1.09% vs 0.41%). Across the 23 metrics below, Alamo Group, Inc. leads on 12 and Lindsay Corporation on 11.

Valuation

Metric ALG LNN Farm & Heavy Construction Machinery median
P/E 19.00 21.80 23.38
P/S 1.16 1.87 0.81
P/B 1.62 2.36 1.43
Price to free cash flow 13.90 26.20 25.31
EV/EBITDA 9.68 13.42 12.13
EV/Sales 1.20 1.81 1.20
Earnings yield 5.26% 4.59% 2.73%
Free cash flow yield 7.19% 3.82% 3.02%

Profitability

Metric ALG LNN Farm & Heavy Construction Machinery median
Gross margin 24.21% 29.46% 24.21%
Operating margin 8.91% 9.95% 4.47%
Net margin 6.08% 8.79% 1.49%
Free cash flow margin 8.46% 7.15% 2.15%
Return on equity 8.77% 10.74% 4.16%
Return on assets 6.16% 6.64% 1.45%
Return on invested capital 7.37% 8.50% 3.36%

Growth

Metric ALG LNN Farm & Heavy Construction Machinery median
Revenue growth (TTM) 4.07% (7.37%) 2.18%
EPS growth (last fiscal year) (10.80%) 12.81% —
Revenue growth, 5-year CAGR 6.63% 7.34% 7.34%
Net income growth, 5-year CAGR 12.42% 13.90% 0.00%

Health

Metric ALG LNN Farm & Heavy Construction Machinery median
Debt to equity 0.22 0.23 0.67
Current ratio 4.39 2.93 1.98
Net debt to EBITDA (0.50) (1.24) 1.12

Dividend

Metric ALG LNN Farm & Heavy Construction Machinery median
Dividend yield 0.41% 1.09% 1.45%
Payout ratio 0.08 0.21 0.08

Size

Metric ALG LNN Farm & Heavy Construction Machinery median
Market cap 1.94b 1.14b 772.81m

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