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

Institutional and Insider Ownership

82.0% of AGCO Corporation shares are owned by institutional investors. Comparatively, 81.8% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 16.6% of AGCO Corporation shares are owned by company insiders. Comparatively, 8.3% of shares of all “Heavy Machinery & Vehicles” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

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 1.3% and pay out 33.7% of their earnings in the form of a dividend. AGCO Corporation has raised its dividend for 3 consecutive years.

Risk & Volatility

AGCO Corporation has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, AGCO Corporation’s competitors have a beta of 1.44, meaning that their average share price is 44% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for AGCO Corporation and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AGCO Corporation 3 9 3 0 2.00
AGCO Corporation Competitors 171 876 957 17 2.41

AGCO Corporation presently has a consensus target price of $68.85, suggesting a potential downside of 1.63%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 9.35%. Given AGCO Corporation’s competitors stronger consensus rating and higher possible upside, analysts clearly believe AGCO Corporation has less favorable growth aspects than its competitors.

Profitability

This table compares AGCO Corporation and its competitors’ 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 4.06% 13.41% 3.96%

Earnings & Valuation

This table compares AGCO Corporation and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
AGCO Corporation $7.41 billion $160.10 million 27.56
AGCO Corporation Competitors $6.06 billion $48.37 million 164.53

AGCO Corporation has higher revenue and earnings than its competitors. AGCO Corporation 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.

Summary

AGCO Corporation competitors beat AGCO Corporation on 10 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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