Alamo Group, Inc. (ALG) vs Terex Corporation (TEX)

Alamo Group, Inc. and Terex Corporation are both Farm & Heavy Construction Machinery companies. Terex Corporation is the larger, with a market value of $6.1B against $1.7B — 3.7× the size. Alamo Group, Inc. trades at the lower P/E: 21.2× against 27.3×. Terex Corporation grew revenue faster over the last twelve months: 40.1% against 1.81%. Alamo Group, Inc. has the higher net margin (4.72% vs 2.64%) and the higher return on invested capital (5.99% vs 3.73%). Both pay a dividend; Terex Corporation yields more (1.24% vs 1.00%). Across the 23 metrics below, Alamo Group, Inc. leads on 18 and Terex Corporation on 5.

Valuation

Metric ALG TEX Farm & Heavy Construction Machinery median
P/E 21.17 27.32 21.67
P/S 1.00 0.83 0.77
P/B 1.38 1.25 1.31
Price to free cash flow 10.83 14.72 20.59
EV/EBITDA 7.99 11.71 11.30
EV/Sales 1.00 1.12 1.11
Earnings yield 4.72% 3.66% 3.08%
Free cash flow yield 9.23% 6.80% 3.12%

Profitability

Metric ALG TEX Farm & Heavy Construction Machinery median
Gross margin 22.91% 17.12% 22.91%
Operating margin 6.93% 5.68% 4.47%
Net margin 4.72% 2.64% 1.41%
Free cash flow margin 9.35% 5.64% 2.26%
Return on equity 6.70% 5.68% 3.99%
Return on assets 4.71% 2.41% 1.31%
Return on invested capital 5.99% 3.73% 4.09%

Growth

Metric ALG TEX Farm & Heavy Construction Machinery median
Revenue growth (TTM) 1.81% 40.10% 1.81%
EPS growth (last fiscal year) (10.80%) (32.86%) (27.79%)
Revenue growth, 5-year CAGR 6.63% 12.00% 6.63%
Net income growth, 5-year CAGR 12.42% 0.00% 0.00%

Health

Metric ALG TEX Farm & Heavy Construction Machinery median
Debt to equity 0.20 0.52 0.66
Current ratio 4.19 1.76 1.98
Net debt to EBITDA (0.50) 2.86 1.12

Dividend

Metric ALG TEX Farm & Heavy Construction Machinery median
Dividend yield 1.00% 1.24% 1.24%
Payout ratio 0.21 0.34 0.31

Size

Metric ALG TEX Farm & Heavy Construction Machinery median
Market cap 1.66b 6.13b 836.63m

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