AGCO (AGCO) Competitors

AGCO (NYSE:AGCO) and Caterpillar (NYSE:CAT) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership, media sentiment and earnings.

Does the media favor AGCO or CAT?

In the previous week, Caterpillar had 82 more articles in the media than AGCO. MarketBeat recorded 95 mentions for Caterpillar and 13 mentions for AGCO. Caterpillar's average media sentiment score of 1.33 beat AGCO's score of 0.41 indicating that Caterpillar is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
AGCO	6 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	2 Negative mention(s)	1 Very Negative mention(s)	Neutral
Caterpillar	66 Very Positive mention(s)	6 Positive mention(s)	6 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility and risk, AGCO or CAT?

AGCO has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Caterpillar has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.

Do institutionals and insiders hold more shares of AGCO or CAT?

78.8% of AGCO shares are held by institutional investors. Comparatively, 71.0% of Caterpillar shares are held by institutional investors. 16.6% of AGCO shares are held by company insiders. Comparatively, 0.3% of Caterpillar shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Which has stronger earnings and valuation, AGCO or CAT?

Caterpillar has higher revenue and earnings than AGCO. Caterpillar is trading at a lower price-to-earnings ratio than AGCO, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AGCO	$11.66B	0.70	-$424.80M	$1.34	81.81
Caterpillar	$64.81B	3.37	$10.79B	$19.66	23.73

Is AGCO or CAT more profitable?

Caterpillar has a net margin of 14.95% compared to AGCO's net margin of 0.98%. Caterpillar's return on equity of 48.95% beat AGCO's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
AGCO	0.98%	8.27%	2.71%
Caterpillar	14.95%	48.95%	10.60%

Do analysts rate AGCO or CAT?

AGCO presently has a consensus price target of $110.38, suggesting a potential upside of 0.68%. Caterpillar has a consensus price target of $460.20, suggesting a potential downside of 1.38%. Given AGCO's higher possible upside, equities analysts plainly believe AGCO is more favorable than Caterpillar.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGCO	1 Sell rating(s)	5 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	2.40
Caterpillar	0 Sell rating(s)	5 Hold rating(s)	11 Buy rating(s)	2 Strong Buy rating(s)	2.83

Is AGCO or CAT a better dividend stock?

AGCO pays an annual dividend of $1.16 per share and has a dividend yield of 1.1%. Caterpillar pays an annual dividend of $6.04 per share and has a dividend yield of 1.3%. AGCO pays out 86.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Caterpillar pays out 30.7% of its earnings in the form of a dividend. AGCO has raised its dividend for 12 consecutive years and Caterpillar has raised its dividend for 30 consecutive years. Caterpillar is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Caterpillar beats AGCO on 16 of the 20 factors compared between the two stocks.