ALG
Alamo Group Inc.
Agricultural - Machinery
Market Cap$2.08B
5Y Perf.+65.4%
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Stock Comparison
ALG vs CAT
Revenue, margins, valuation, and 5-year total return — side by side.
CAT
Caterpillar Inc.
Agricultural - Machinery
Market Cap$431.16B
5Y Perf.+671.4%
ALG vs CAT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ALG | CAT |
|---|---|---|
| Industry | Agricultural - Machinery | Agricultural - Machinery |
| Market Cap | $2.08B | $431.16B |
| Revenue (TTM) | $1.63B | $70.75B |
| Net Income (TTM) | $101M | $9.42B |
| Gross Margin | 24.5% | 32.5% |
| Operating Margin | 9.2% | 16.6% |
| Forward P/E | 16.5x | 40.1x |
| Total Debt | $220M | $43.33B |
| Cash & Equiv. | $310M | $9.98B |
ALG vs CAT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
ALG
CAT
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Alamo Group Inc. (ALG) | 100 | 165.4 | +65.4% |
| Caterpillar Inc. (CAT) | 100 | 771.4 | +671.4% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ALG vs CAT
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: CAT leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. Alamo Group Inc. is the stronger pick specifically for valuation and capital efficiency and capital preservation and lower volatility. As sector peers, any of these can serve as alternatives in the same allocation.
ALG
Alamo Group Inc.
The Income Pick
ALG is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 13 yrs, beta 0.99, yield 0.7%
- Lower volatility, beta 0.99, Low D/E 19.2%, current ratio 4.57x
- PEG 1.38 vs CAT's 1.43
Best for: income & stability and sleep-well-at-night
CAT
Caterpillar Inc.
The Growth Play
CAT carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 4.3%, EPS growth -14.6%, 3Y rev CAGR 4.4%
- 12.2% 10Y total return vs ALG's 219.5%
- 4.3% revenue growth vs ALG's -1.5%
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | CAT | 4.3% revenue growth vs ALG's -1.5% |
| Value | ALG | Lower P/E (16.5x vs 40.1x), PEG 1.38 vs 1.43 |
| Quality / Margins | CAT | 13.3% margin vs ALG's 6.2% |
| Stability / Safety | ALG | Beta 0.99 vs CAT's 1.54, lower leverage |
| Dividends | ALG | 0.7% yield, 13-year raise streak, vs CAT's 0.6% |
| Momentum (1Y) | CAT | +190.7% vs ALG's -0.2% |
| Efficiency (ROA) | CAT | 10.0% ROA vs ALG's 6.2%, ROIC 15.9% vs 10.8% |
ALG vs CAT — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
ALG vs CAT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLCATLAGGINGALG
ALGAlamo Group Inc.
2leads
CATCaterpillar Inc.
3leads
6 Total Categories
CATEGORYLEADERvs ALGMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
CAT6/6
Valuation MetricsMultiples, price ratios, and targets
ALG7/7
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
CAT5/8
Total Returns1Y, 3Y, 5Y total returns with dividends
CAT6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
ALG2/2
Income & Cash Flow (Last 12 Months)
CAT leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
CAT is the larger business by revenue, generating $70.8B annually — 43.4x ALG's $1.6B. CAT is the more profitable business, keeping 13.3% of every revenue dollar as net income compared to ALG's 6.2%. On growth, CAT holds the edge at +22.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ALGAlamo Group Inc. | CATCaterpillar Inc. |
|---|---|---|
| RevenueTrailing 12 months | $1.6B | $70.8B |
| EBITDAEarnings before interest/tax | $218M | $14.0B |
| Net IncomeAfter-tax profit | $101M | $9.4B |
| Free Cash FlowCash after capex | $111M | $11.4B |
| Gross MarginGross profit ÷ Revenue | +24.5% | +32.5% |
| Operating MarginEBIT ÷ Revenue | +9.2% | +16.6% |
| Net MarginNet income ÷ Revenue | +6.2% | +13.3% |
| FCF MarginFCF ÷ Revenue | +6.8% | +16.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.7% | +22.2% |
| EPS Growth (YoY)Latest quarter vs prior year | -8.7% | +30.2% |
CAT leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
ALG leads this category, winning 7 of 7 comparable metrics.
Valuation Metrics
At 19.9x trailing earnings, ALG trades at a 60% valuation discount to CAT's 49.2x P/E. Adjusting for growth (PEG ratio), ALG offers better value at 1.66x vs CAT's 1.75x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | ALGAlamo Group Inc. | CATCaterpillar Inc. |
|---|---|---|
| Market CapShares × price | $2.1B | $431.2B |
| Enterprise ValueMkt cap + debt − cash | $2.0B | $464.5B |
| Trailing P/EPrice ÷ TTM EPS | 19.89x | 49.21x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.54x | 40.13x |
| PEG RatioP/E ÷ EPS growth rate | 1.66x | 1.75x |
| EV / EBITDAEnterprise value multiple | 10.19x | 34.48x |
| Price / SalesMarket cap ÷ Revenue | 1.30x | 6.38x |
| Price / BookPrice ÷ Book value/share | 1.80x | 20.39x |
| Price / FCFMarket cap ÷ FCF | 14.15x | 41.97x |
ALG leads this category, winning 7 of 7 comparable metrics.
Profitability & Efficiency
CAT leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
CAT delivers a 47.5% return on equity — every $100 of shareholder capital generates $48 in annual profit, vs $9 for ALG. ALG carries lower financial leverage with a 0.19x debt-to-equity ratio, signaling a more conservative balance sheet compared to CAT's 2.03x.
| Metric | ALGAlamo Group Inc. | CATCaterpillar Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +8.9% | +47.5% |
| ROA (TTM)Return on assets | +6.2% | +10.0% |
| ROICReturn on invested capital | +10.8% | +15.9% |
| ROCEReturn on capital employed | +11.5% | +19.1% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 0.19x | 2.03x |
| Net DebtTotal debt minus cash | -$89M | $33.4B |
| Cash & Equiv.Liquid assets | $310M | $10.0B |
| Total DebtShort + long-term debt | $220M | $43.3B |
| Interest CoverageEBIT ÷ Interest expense | 6.38x | 9.22x |
CAT leads this category, winning 5 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
CAT leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in CAT five years ago would be worth $40,189 today (with dividends reinvested), compared to $10,787 for ALG. Over the past 12 months, CAT leads with a +190.7% total return vs ALG's -0.2%. The 3-year compound annual growth rate (CAGR) favors CAT at 63.8% vs ALG's -1.4% — a key indicator of consistent wealth creation.
| Metric | ALGAlamo Group Inc. | CATCaterpillar Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +0.6% | +55.4% |
| 1-Year ReturnPast 12 months | -0.2% | +190.7% |
| 3-Year ReturnCumulative with dividends | -4.2% | +339.3% |
| 5-Year ReturnCumulative with dividends | +7.9% | +301.9% |
| 10-Year ReturnCumulative with dividends | +219.5% | +1223.1% |
| CAGR (3Y)Annualised 3-year return | -1.4% | +63.8% |
CAT leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — ALG and CAT each lead in 1 of 2 comparable metrics.
Risk & Volatility
ALG is the less volatile stock with a 0.99 beta — it tends to amplify market swings less than CAT's 1.54 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. CAT currently trades 99.6% from its 52-week high vs ALG's 73.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ALGAlamo Group Inc. | CATCaterpillar Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.99x | 1.54x |
| 52-Week HighHighest price in past year | $233.29 | $930.41 |
| 52-Week LowLowest price in past year | $156.29 | $318.11 |
| % of 52W HighCurrent price vs 52-week peak | +73.2% | +99.6% |
| RSI (14)Momentum oscillator 0–100 | 43.0 | 73.7 |
| Avg Volume (50D)Average daily shares traded | 171K | 2.4M |
Evenly matched — ALG and CAT each lead in 1 of 2 comparable metrics.
Analyst Outlook
ALG leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates ALG as "Buy" and CAT as "Buy". Consensus price targets imply 11.2% upside for ALG (target: $190) vs -11.0% for CAT (target: $825). For income investors, ALG offers the higher dividend yield at 0.70% vs CAT's 0.63%.
| Metric | ALGAlamo Group Inc. | CATCaterpillar Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $190.00 | $824.80 |
| # AnalystsCovering analysts | 10 | 53 |
| Dividend YieldAnnual dividend ÷ price | +0.7% | +0.6% |
| Dividend StreakConsecutive years of raises | 13 | 8 |
| Dividend / ShareAnnual DPS | $1.19 | $5.86 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +1.2% |
ALG leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
CAT leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). ALG leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
Best OverallCaterpillar Inc. (CAT)Leads 3 of 6 categories
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ALG vs CAT: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is ALG or CAT a better buy right now?
For growth investors, Caterpillar Inc.
(CAT) is the stronger pick with 4. 3% revenue growth year-over-year, versus -1. 5% for Alamo Group Inc. (ALG). Alamo Group Inc. (ALG) offers the better valuation at 19. 9x trailing P/E (16. 5x forward), making it the more compelling value choice. Analysts rate Alamo Group Inc. (ALG) a "Buy" — based on 10 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.
02Which has the better valuation — ALG or CAT?
On trailing P/E, Alamo Group Inc.
(ALG) is the cheapest at 19. 9x versus Caterpillar Inc. at 49. 2x. On forward P/E, Alamo Group Inc. is actually cheaper at 16. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Alamo Group Inc. wins at 1. 38x versus Caterpillar Inc. 's 1. 43x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — ALG or CAT?
Over the past 5 years, Caterpillar Inc.
(CAT) delivered a total return of +301. 9%, compared to +7. 9% for Alamo Group Inc. (ALG). Over 10 years, the gap is even starker: CAT returned +1223% versus ALG's +219. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ALG or CAT?
By beta (market sensitivity over 5 years), Alamo Group Inc.
(ALG) is the lower-risk stock at 0. 99β versus Caterpillar Inc. 's 1. 54β — meaning CAT is approximately 56% more volatile than ALG relative to the S&P 500. On balance sheet safety, Alamo Group Inc. (ALG) carries a lower debt/equity ratio of 19% versus 2% for Caterpillar Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — ALG or CAT?
By revenue growth (latest reported year), Caterpillar Inc.
(CAT) is pulling ahead at 4. 3% versus -1. 5% for Alamo Group Inc. (ALG). On earnings-per-share growth, the picture is similar: Alamo Group Inc. grew EPS -10. 8% year-over-year, compared to -14. 6% for Caterpillar Inc.. Over a 3-year CAGR, CAT leads at 4. 4% annualised revenue growth. 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.
06Which has better profit margins — ALG or CAT?
Caterpillar Inc.
(CAT) is the more profitable company, earning 13. 1% net margin versus 6. 5% for Alamo Group Inc. — meaning it keeps 13. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CAT leads at 16. 6% versus 9. 5% for ALG. At the gross margin level — before operating expenses — CAT leads at 32. 3%, 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.
07Is ALG or CAT more undervalued right now?
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, Alamo Group Inc. (ALG) is the more undervalued stock at a PEG of 1. 38x versus Caterpillar Inc. 's 1. 43x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Alamo Group Inc. (ALG) trades at 16. 5x forward P/E versus 40. 1x for Caterpillar Inc. — 23. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ALG: 11. 2% to $190. 00.
08Which pays a better dividend — ALG or CAT?
All stocks in this comparison pay dividends.
Alamo Group Inc. (ALG) offers the highest yield at 0. 7%, versus 0. 6% for Caterpillar Inc. (CAT).
09Is ALG or CAT better for a retirement portfolio?
For long-horizon retirement investors, Caterpillar Inc.
(CAT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0. 6% yield, +1223% 10Y return). Both have compounded well over 10 years (CAT: +1223%, ALG: +219. 5%), 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.
10What are the main differences between ALG and CAT?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
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.
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Revenue Growth>
%
(ALG: 6.7% · CAT: 22.2%)Net Margin>
%
(ALG: 6.2% · CAT: 13.3%)P/E Ratio<
x
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