Agricultural - Machinery
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ALG vs DE
Revenue, margins, valuation, and 5-year total return — side by side.
Agricultural - Machinery
ALG vs DE — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Agricultural - Machinery | Agricultural - Machinery |
| Market Cap | $2.08B | $160.38B |
| Revenue (TTM) | $1.63B | $45.88B |
| Net Income (TTM) | $101M | $4.08B |
| Gross Margin | 24.5% | 34.7% |
| Operating Margin | 9.2% | 17.0% |
| Forward P/E | 16.5x | 33.2x |
| Total Debt | $220M | $63.94B |
| Cash & Equiv. | $310M | $8.28B |
ALG vs DE — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Alamo Group Inc. (ALG) | 100 | 165.4 | +65.4% |
| Deere & Company (DE) | 100 | 388.9 | +288.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ALG vs DE
Each card shows where this stock fits in a portfolio — not just who wins on paper.
ALG carries the broadest edge in this set and is the clearest fit for growth exposure and sleep-well-at-night.
- Rev growth -1.5%, EPS growth -10.8%, 3Y rev CAGR 1.9%
- Lower volatility, beta 0.99, Low D/E 19.2%, current ratio 4.57x
- PEG 1.38 vs DE's 2.03
DE is the clearest fit if your priority is income & stability and long-term compounding.
- Dividend streak 8 yrs, beta 0.56, yield 1.1%
- 6.8% 10Y total return vs ALG's 219.5%
- Beta 0.56, yield 1.1%, current ratio 2.31x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | -1.5% revenue growth vs DE's -2.2% | |
| Value | Lower P/E (16.5x vs 33.2x), PEG 1.38 vs 2.03 | |
| Quality / Margins | 8.9% margin vs ALG's 6.2% | |
| Stability / Safety | Beta 0.56 vs ALG's 0.99 | |
| Dividends | 0.7% yield, 13-year raise streak, vs DE's 1.1% | |
| Momentum (1Y) | +25.8% vs ALG's -0.2% | |
| Efficiency (ROA) | 6.2% ROA vs DE's 3.9%, ROIC 10.8% vs 7.7% |
ALG vs DE — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
ALG vs DE — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
DE leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
DE is the larger business by revenue, generating $45.9B annually — 28.1x ALG's $1.6B. Profitability is closely matched — net margins range from 8.9% (DE) to 6.2% (ALG). On growth, DE holds the edge at +16.3% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $1.6B | $45.9B |
| EBITDAEarnings before interest/tax | $218M | $9.5B |
| Net IncomeAfter-tax profit | $101M | $4.1B |
| Free Cash FlowCash after capex | $111M | $5.5B |
| Gross MarginGross profit ÷ Revenue | +24.5% | +34.7% |
| Operating MarginEBIT ÷ Revenue | +9.2% | +17.0% |
| Net MarginNet income ÷ Revenue | +6.2% | +8.9% |
| FCF MarginFCF ÷ Revenue | +6.8% | +12.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +6.7% | +16.3% |
| EPS Growth (YoY)Latest quarter vs prior year | -8.7% | -24.1% |
Valuation Metrics
ALG leads this category, winning 7 of 7 comparable metrics.
Valuation Metrics
At 19.9x trailing earnings, ALG trades at a 38% valuation discount to DE's 32.0x P/E. Adjusting for growth (PEG ratio), ALG offers better value at 1.66x vs DE's 1.96x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | ||
|---|---|---|
| Market CapShares × price | $2.1B | $160.4B |
| Enterprise ValueMkt cap + debt − cash | $2.0B | $216.0B |
| Trailing P/EPrice ÷ TTM EPS | 19.89x | 31.98x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.54x | 33.16x |
| PEG RatioP/E ÷ EPS growth rate | 1.66x | 1.96x |
| EV / EBITDAEnterprise value multiple | 10.19x | 20.29x |
| Price / SalesMarket cap ÷ Revenue | 1.30x | 3.59x |
| Price / BookPrice ÷ Book value/share | 1.80x | 6.18x |
| Price / FCFMarket cap ÷ FCF | 14.15x | 49.64x |
Profitability & Efficiency
ALG leads this category, winning 7 of 8 comparable metrics.
Profitability & Efficiency
DE delivers a 15.5% return on equity — every $100 of shareholder capital generates $15 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 DE's 2.46x.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +8.9% | +15.5% |
| ROA (TTM)Return on assets | +6.2% | +3.9% |
| ROICReturn on invested capital | +10.8% | +7.7% |
| ROCEReturn on capital employed | +11.5% | +11.4% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 0.19x | 2.46x |
| Net DebtTotal debt minus cash | -$89M | $55.7B |
| Cash & Equiv.Liquid assets | $310M | $8.3B |
| Total DebtShort + long-term debt | $220M | $63.9B |
| Interest CoverageEBIT ÷ Interest expense | 6.38x | 2.74x |
Total Returns (Dividends Reinvested)
DE leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in DE five years ago would be worth $15,865 today (with dividends reinvested), compared to $10,787 for ALG. Over the past 12 months, DE leads with a +25.8% total return vs ALG's -0.2%. The 3-year compound annual growth rate (CAGR) favors DE at 17.1% vs ALG's -1.4% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +0.6% | +27.1% |
| 1-Year ReturnPast 12 months | -0.2% | +25.8% |
| 3-Year ReturnCumulative with dividends | -4.2% | +60.4% |
| 5-Year ReturnCumulative with dividends | +7.9% | +58.7% |
| 10-Year ReturnCumulative with dividends | +219.5% | +676.6% |
| CAGR (3Y)Annualised 3-year return | -1.4% | +17.1% |
Risk & Volatility
DE leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
DE is the less volatile stock with a 0.56 beta — it tends to amplify market swings less than ALG's 0.99 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. DE currently trades 87.8% from its 52-week high vs ALG's 73.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.99x | 0.56x |
| 52-Week HighHighest price in past year | $233.29 | $674.19 |
| 52-Week LowLowest price in past year | $156.29 | $433.00 |
| % of 52W HighCurrent price vs 52-week peak | +73.2% | +87.8% |
| RSI (14)Momentum oscillator 0–100 | 43.0 | 48.1 |
| Avg Volume (50D)Average daily shares traded | 171K | 1.2M |
Analyst Outlook
Evenly matched — ALG and DE each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates ALG as "Buy" and DE as "Hold". Consensus price targets imply 15.0% upside for DE (target: $681) vs 11.2% for ALG (target: $190). For income investors, DE offers the higher dividend yield at 1.07% vs ALG's 0.70%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $190.00 | $680.54 |
| # AnalystsCovering analysts | 10 | 46 |
| Dividend YieldAnnual dividend ÷ price | +0.7% | +1.1% |
| Dividend StreakConsecutive years of raises | 13 | 8 |
| Dividend / ShareAnnual DPS | $1.19 | $6.33 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +0.7% |
DE leads in 3 of 6 categories (Income & Cash Flow, Total Returns). ALG leads in 2 (Valuation Metrics, Profitability & Efficiency). 1 tied.
ALG vs DE: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is ALG or DE a better buy right now?
For growth investors, Alamo Group Inc.
(ALG) is the stronger pick with -1. 5% revenue growth year-over-year, versus -2. 2% for Deere & Company (DE). 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 DE?
On trailing P/E, Alamo Group Inc.
(ALG) is the cheapest at 19. 9x versus Deere & Company at 32. 0x. 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 Deere & Company's 2. 03x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — ALG or DE?
Over the past 5 years, Deere & Company (DE) delivered a total return of +58.
7%, compared to +7. 9% for Alamo Group Inc. (ALG). Over 10 years, the gap is even starker: DE returned +676. 6% 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 DE?
By beta (market sensitivity over 5 years), Deere & Company (DE) is the lower-risk stock at 0.
56β versus Alamo Group Inc. 's 0. 99β — meaning ALG is approximately 75% more volatile than DE 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 Deere & Company — giving it more financial flexibility in a downturn.
05Which is growing faster — ALG or DE?
By revenue growth (latest reported year), Alamo Group Inc.
(ALG) is pulling ahead at -1. 5% versus -2. 2% for Deere & Company (DE). On earnings-per-share growth, the picture is similar: Deere & Company grew EPS 0. 0% year-over-year, compared to -10. 8% for Alamo Group Inc.. Over a 3-year CAGR, ALG leads at 1. 9% 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 DE?
Deere & Company (DE) is the more profitable company, earning 11.
3% net margin versus 6. 5% for Alamo Group Inc. — meaning it keeps 11. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DE leads at 18. 8% versus 9. 5% for ALG. 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.
07Is ALG or DE 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 Deere & Company's 2. 03x. 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 33. 2x for Deere & Company — 16. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for DE: 15. 0% to $680. 54.
08Which pays a better dividend — ALG or DE?
All stocks in this comparison pay dividends.
Deere & Company (DE) offers the highest yield at 1. 1%, versus 0. 7% for Alamo Group Inc. (ALG).
09Is ALG or DE better for a retirement portfolio?
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%, 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 DE?
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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