AGCO Corporation (NYSE: AGCO) is one of 15 publicly-traded companies in the “Heavy Machinery & Vehicles” industry, but how does it contrast to its peers? We will compare AGCO Corporation to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Volatility & Risk

AGCO Corporation has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, AGCO Corporation’s peers have a beta of 1.43, suggesting that their average stock price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for AGCO Corporation and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AGCO Corporation 3 9 3 0 2.00
AGCO Corporation Competitors 167 871 942 17 2.41

AGCO Corporation presently has a consensus price target of $68.85, suggesting a potential downside of 0.22%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 3.64%. Given AGCO Corporation’s peers stronger consensus rating and higher possible upside, analysts clearly believe AGCO Corporation has less favorable growth aspects than its peers.

Dividends

AGCO Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. AGCO Corporation pays out 22.0% of its earnings in the form of a dividend. As a group, “Heavy Machinery & Vehicles” companies pay a dividend yield of 1.2% and pay out 33.1% of their earnings in the form of a dividend. AGCO Corporation has increased its dividend for 3 consecutive years.

Profitability

This table compares AGCO Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AGCO Corporation 2.59% 7.50% 2.90%
AGCO Corporation Competitors 3.71% 14.28% 4.26%

Insider and Institutional Ownership

80.8% of AGCO Corporation shares are owned by institutional investors. Comparatively, 82.4% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 16.6% of AGCO Corporation shares are owned by insiders. Comparatively, 8.3% of shares of all “Heavy Machinery & Vehicles” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares AGCO Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
AGCO Corporation $7.41 billion $160.10 million 27.17
AGCO Corporation Competitors $4.89 billion $73.89 million 168.40

AGCO Corporation has higher revenue and earnings than its peers. AGCO Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

AGCO Corporation peers beat AGCO Corporation on 11 of the 15 factors compared.

About AGCO Corporation

AGCO Corporation is a manufacturer and distributor of agricultural equipment and related replacement parts. The Company sells a range of agricultural equipment, including tractors, combines, self-propelled sprayers, hay tools, forage equipment, seeding and tillage equipment, implements, and grain storage and protein production systems. The Company’s segments are North America, South America, Europe/Middle East, and Asia/Pacific/Africa. The Company’s products are marketed under various brands, including Challenger, Fendt, GSI, Massey Ferguson and Valtra. As of December 31, 2016, the Company distributed its products through over 3,000 independent dealers and distributors in more than 150 countries. In addition, the Company also provides retail and wholesale financing through its finance joint ventures with Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank). The Company’s AGCO Power engines division produces diesel engines, gears and generating sets.

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