Alamo Group (ALG) versus Deere & (DE) Head to Head Comparison
Alamo Group (NYSE: ALG) and Deere & (NYSE:DE) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.
This is a summary of current ratings for Alamo Group and Deere &, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Alamo Group currently has a consensus price target of $92.00, indicating a potential upside of 3.06%. Deere & has a consensus price target of $128.63, indicating a potential upside of 11.00%. Given Deere &’s higher probable upside, analysts plainly believe Deere & is more favorable than Alamo Group.
Risk & Volatility
Alamo Group has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Deere & has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
This table compares Alamo Group and Deere &’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Alamo Group and Deere &’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Alamo Group||$850.95 million||1.22||$93.56 million||$3.89||22.95|
|Deere &||$28.05 billion||1.33||$4.43 billion||$5.97||19.41|
Deere & has higher revenue and earnings than Alamo Group. Deere & is trading at a lower price-to-earnings ratio than Alamo Group, indicating that it is currently the more affordable of the two stocks.
Alamo Group pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Deere & pays an annual dividend of $2.40 per share and has a dividend yield of 2.1%. Alamo Group pays out 10.3% of its earnings in the form of a dividend. Deere & pays out 40.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Alamo Group has increased its dividend for 2 consecutive years.
Institutional & Insider Ownership
90.3% of Alamo Group shares are owned by institutional investors. Comparatively, 67.2% of Deere & shares are owned by institutional investors. 4.0% of Alamo Group shares are owned by company insiders. Comparatively, 0.8% of Deere & shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Deere & beats Alamo Group on 9 of the 17 factors compared between the two stocks.
Alamo Group Company Profile
Alamo Group Inc. is engaged in the design and manufacture of agricultural equipment and infrastructure maintenance equipment for governmental and industrial use. The Company operates in Industrial, Agricultural and European segments. The Company’s products include tractor-mounted mowing and other vegetation maintenance equipment, street sweepers, excavators, vacuum trucks, snow removal equipment, pothole patchers, zero turn radius mowers, agricultural implements and related aftermarket. As of December 31, 2016, the Company operated 24 plants in North America, Europe, Australia and Brazil. The Company sells its products through a network of independent dealers and distributors to Governmental end users, related independent contractors, as well as to the agricultural and commercial turf markets. It also offers replacement parts for each of its wholegoods lines. The Company’s products are sold through various marketing organizations, and dealer and distributor networks.
Deere & Company Profile
Deere & Company is engaged in equipment operations. The Company is engaged in providing financial services. The Company operates through three business segments: agriculture and turf, construction and forestry, and financial services. The agriculture and turf segment manufactures and distributes a line of agriculture and turf equipment and related service parts. The construction and forestry segment provides a line of construction equipment, and forestry machines and attachments available in the world. The construction and forestry segment is also engaged in providing fleet management telematics solutions. The financial services segment primarily finances sales and leases by the Company dealers of new and used agriculture and turf equipment and construction and forestry equipment. The financial services segment also provides wholesale financing to dealers of the foregoing equipment, finances retail revolving charge accounts and offers extended equipment warranties.
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