AGCO (AGCO) Competitors

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

Do insiders and institutionals believe in AGCO or CAT?

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

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 rate AGCO or CAT?

AGCO presently has a consensus price target of $106.30, suggesting a potential downside of 0.77%. Caterpillar has a consensus price target of $406.47, suggesting a potential downside of 2.08%. Given AGCO's higher possible upside, research 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)	7 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.18
Caterpillar	0 Sell rating(s)	6 Hold rating(s)	10 Buy rating(s)	2 Strong Buy rating(s)	2.78

Which has more risk and volatility, 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.

Which has stronger valuation and 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	0.69	-$424.80M	-$7.80	-13.73
Caterpillar	$63.26B	3.09	$10.79B	$20.52	20.23

Does the media prefer AGCO or CAT?

In the previous week, Caterpillar had 40 more articles in the media than AGCO. MarketBeat recorded 66 mentions for Caterpillar and 26 mentions for AGCO. Caterpillar's average media sentiment score of 0.95 beat AGCO's score of 0.69 indicating that Caterpillar is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
AGCO	10 Very Positive mention(s)	3 Positive mention(s)	8 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
Caterpillar	44 Very Positive mention(s)	5 Positive mention(s)	13 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive

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 1.5%. AGCO pays out -14.9% of its earnings in the form of a dividend. Caterpillar pays out 29.4% 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 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.