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 $6.5B against $1.9B — 3.3× the size. Alamo Group, Inc. trades at the lower P/E: 19.0× against 28.8×. Terex Corporation grew revenue faster over the last twelve months: 29.2% against 4.07%. Alamo Group, Inc. has the higher net margin (6.08% vs 2.23%) and the higher return on invested capital (7.37% vs 3.31%). Both pay a dividend; Terex Corporation yields more (1.02% vs 0.41%). 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 19.00 28.81 23.38
P/S 1.16 0.98 0.81
P/B 1.62 1.32 1.43
Price to free cash flow 13.90 19.04 25.31
EV/EBITDA 9.68 14.09 12.13
EV/Sales 1.20 1.32 1.20
Earnings yield 5.26% 3.47% 2.73%
Free cash flow yield 7.19% 5.25% 3.02%

Profitability

Metric ALG TEX Farm & Heavy Construction Machinery median
Gross margin 24.21% 17.16% 24.21%
Operating margin 8.91% 5.72% 4.47%
Net margin 6.08% 2.23% 1.49%
Free cash flow margin 8.46% 5.12% 2.15%
Return on equity 8.77% 4.33% 4.16%
Return on assets 6.16% 1.81% 1.45%
Return on invested capital 7.37% 3.31% 3.36%

Growth

Metric ALG TEX Farm & Heavy Construction Machinery median
Revenue growth (TTM) 4.07% 29.17% 2.18%
EPS growth (last fiscal year) (10.80%) (32.86%) —
Revenue growth, 5-year CAGR 6.63% 12.00% 7.34%
Net income growth, 5-year CAGR 12.42% 0.00% 0.00%

Health

Metric ALG TEX Farm & Heavy Construction Machinery median
Debt to equity 0.22 0.55 0.67
Current ratio 4.39 1.82 1.98
Net debt to EBITDA (0.50) 2.86 1.12

Dividend

Metric ALG TEX Farm & Heavy Construction Machinery median
Dividend yield 0.41% 1.02% 1.45%
Payout ratio 0.08 0.09 0.08

Size

Metric ALG TEX Farm & Heavy Construction Machinery median
Market cap 1.94b 6.47b 772.81m

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