Alamo Group, Inc. (ALG) vs PACCAR Inc. (PCAR)

Alamo Group, Inc. and PACCAR Inc. are both Farm & Heavy Construction Machinery companies. PACCAR Inc. is the larger, with a market value of $58.3B against $1.9B — 31.4× the size. Alamo Group, Inc. trades at the lower P/E: 18.0× against 23.3×. Alamo Group, Inc. grew revenue faster over the last twelve months: 4.07% against −10.6%. PACCAR Inc. has the higher net margin (9.00% vs 6.08%) and the higher return on invested capital (8.85% vs 7.37%). Both pay a dividend; PACCAR Inc. yields more (2.49% vs 0.90%). Across the 23 metrics below, Alamo Group, Inc. leads on 15 and PACCAR Inc. on 8.

Valuation

Metric ALG PCAR Farm & Heavy Construction Machinery median
P/E 17.96 23.28 23.28
P/S 1.09 2.10 0.75
P/B 1.53 2.87 1.43
Price to free cash flow 13.13 15.86 22.25
EV/EBITDA 9.16 14.16 11.41
EV/Sales 1.14 2.31 1.14
Earnings yield 5.57% 4.30% 2.83%
Free cash flow yield 7.61% 6.31% 2.91%

Profitability

Metric ALG PCAR Farm & Heavy Construction Machinery median
Gross margin 24.21% 19.99% 24.21%
Operating margin 8.91% 13.33% 4.47%
Net margin 6.08% 9.00% 1.49%
Free cash flow margin 8.46% 13.24% 2.15%
Return on equity 8.77% 12.76% 3.99%
Return on assets 6.16% 5.69% 1.31%
Return on invested capital 7.37% 8.85% 3.36%

Growth

Metric ALG PCAR Farm & Heavy Construction Machinery median
Revenue growth (TTM) 4.07% (10.56%) 2.18%
EPS growth (last fiscal year) (10.80%) (42.91%) (27.79%)
Revenue growth, 5-year CAGR 6.63% 8.72% 7.34%
Net income growth, 5-year CAGR 12.42% 12.80% 0.00%

Health

Metric ALG PCAR Farm & Heavy Construction Machinery median
Debt to equity 0.22 0.72 0.67
Current ratio 4.39 3.12 1.98
Net debt to EBITDA (0.50) 1.30 1.12

Dividend

Metric ALG PCAR Farm & Heavy Construction Machinery median
Dividend yield 0.90% 2.49% 1.34%
Payout ratio 0.16 0.58 0.30

Size

Metric ALG PCAR Farm & Heavy Construction Machinery median
Market cap 1.86b 58.33b 808.87m

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