AGCO (AGCO) Competitors

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

Which has higher valuation & earnings, AGCO or CAT?

Caterpillar has higher revenue and earnings than AGCO. AGCO is trading at a lower price-to-earnings ratio than Caterpillar, 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	0.71	-$424.80M	-$7.80	-14.15
Caterpillar	$64.81B	2.89	$10.79B	$20.52	19.40

Do insiders and institutionals 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 stock is poised for long-term growth.

Which has more volatility and risk, AGCO or CAT?

AGCO has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, Caterpillar has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Does the media favor AGCO or CAT?

In the previous week, Caterpillar had 37 more articles in the media than AGCO. MarketBeat recorded 54 mentions for Caterpillar and 17 mentions for AGCO. Caterpillar's average media sentiment score of 1.27 beat AGCO's score of 0.20 indicating that Caterpillar is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
AGCO	5 Very Positive mention(s)	5 Positive mention(s)	5 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Neutral
Caterpillar	46 Very Positive mention(s)	3 Positive mention(s)	4 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Is AGCO or CAT more profitable?

Caterpillar has a net margin of 15.71% compared to AGCO's net margin of -5.40%. Caterpillar's return on equity of 53.77% beat AGCO's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
AGCO	-5.40%	10.60%	3.35%
Caterpillar	15.71%	53.77%	11.64%

Do analysts prefer AGCO or CAT?

AGCO presently has a consensus price target of $104.10, indicating a potential downside of 5.66%. Caterpillar has a consensus price target of $380.83, indicating a potential downside of 4.36%. Given Caterpillar's stronger consensus rating and higher possible upside, analysts clearly believe Caterpillar is more favorable than AGCO.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AGCO	1 Sell rating(s)	7 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.18
Caterpillar	0 Sell rating(s)	5 Hold rating(s)	9 Buy rating(s)	1 Strong Buy rating(s)	2.73

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 $5.64 per share and has a dividend yield of 1.4%. AGCO pays out -14.9% of its earnings in the form of a dividend. Caterpillar pays out 27.5% 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. AGCO has increased its dividend for 12 consecutive years and Caterpillar has increased 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 17 of the 20 factors compared between the two stocks.