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

Institutional & Insider Ownership

82.6% of AGCO shares are held by institutional investors. Comparatively, 82.3% of shares of all “Heavy Machinery & Vehicles” companies are held by institutional investors. 16.6% of AGCO shares are held by company insiders. Comparatively, 8.3% of shares of all “Heavy Machinery & Vehicles” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for AGCO and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AGCO 3 9 4 0 2.06
AGCO Competitors 171 884 962 17 2.41

AGCO presently has a consensus price target of $70.36, suggesting a potential downside of 2.81%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 7.98%. Given AGCO’s competitors stronger consensus rating and higher probable upside, analysts clearly believe AGCO has less favorable growth aspects than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
AGCO 2.59% 7.50% 2.90%
AGCO Competitors 4.06% 13.41% 3.96%

Dividends

AGCO pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. AGCO 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 1.3% and pay out 35.8% of their earnings in the form of a dividend. AGCO has raised its dividend for 3 consecutive years.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
AGCO $7.41 billion $160.10 million 28.50
AGCO Competitors $6.06 billion $48.37 million 116.71

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

Risk and Volatility

AGCO has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, AGCO’s competitors have a beta of 1.44, suggesting that their average stock price is 44% more volatile than the S&P 500.

Summary

AGCO competitors beat AGCO on 10 of the 15 factors compared.

AGCO Company Profile

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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