AGM vs DE

For growth investors, Deere & Company (DE) is the stronger pick with -2.

2% revenue growth year-over-year, versus -18. 9% for Federal Agricultural Mortgage Corporation (AGM). Federal Agricultural Mortgage Corporation (AGM) offers the better valuation at 10. 8x trailing P/E (9. 5x forward), making it the more compelling value choice. Analysts rate Federal Agricultural Mortgage Corporation (AGM) a "Buy" — based on 5 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Federal Agricultural Mortgage Corporation (AGM) is the cheapest at 10.

8x versus Deere & Company at 32. 0x. On forward P/E, Federal Agricultural Mortgage Corporation is actually cheaper at 9. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Federal Agricultural Mortgage Corporation wins at 0. 63x versus Deere & Company's 2. 03x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Federal Agricultural Mortgage Corporation (AGM) delivered a total return of +81.

7%, compared to +58. 7% for Deere & Company (DE). Over 10 years, the gap is even starker: DE returned +676. 6% versus AGM's +409. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Deere & Company (DE) is the lower-risk stock at 0.

56β versus Federal Agricultural Mortgage Corporation's 0. 76β — meaning AGM is approximately 35% more volatile than DE relative to the S&P 500. On balance sheet safety, Deere & Company (DE) carries a lower debt/equity ratio of 2% versus 18% for Federal Agricultural Mortgage Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Deere & Company (DE) is pulling ahead at -2.

2% versus -18. 9% for Federal Agricultural Mortgage Corporation (AGM). On earnings-per-share growth, the picture is similar: Federal Agricultural Mortgage Corporation grew EPS 1. 1% year-over-year, compared to 0. 0% for Deere & Company. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Federal Agricultural Mortgage Corporation (AGM) is the more profitable company, earning 15.

7% net margin versus 11. 3% for Deere & Company — meaning it keeps 15. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AGM leads at 19. 4% versus 18. 8% for DE. At the gross margin level — before operating expenses — DE leads at 36. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Federal Agricultural Mortgage Corporation (AGM) is the more undervalued stock at a PEG of 0. 63x versus Deere & Company's 2. 03x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Federal Agricultural Mortgage Corporation (AGM) trades at 9. 5x forward P/E versus 33. 2x for Deere & Company — 23. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AGM: 30. 2% to $233. 00.

All stocks in this comparison pay dividends.

Federal Agricultural Mortgage Corporation (AGM) offers the highest yield at 4. 5%, versus 1. 1% for Deere & Company (DE).

For long-horizon retirement investors, Deere & Company (DE) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

56), 1. 1% yield, +676. 6% 10Y return). Both have compounded well over 10 years (DE: +676. 6%, AGM: +409. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (AGM (Financial Services) and DE (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: AGM is a small-cap deep-value stock; DE is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.