GTES vs ASTE vs CMI vs AGCO vs DE

For growth investors, Astec Industries, Inc.

(ASTE) is the stronger pick with 8. 1% revenue growth year-over-year, versus -13. 5% for AGCO Corporation (AGCO). AGCO Corporation (AGCO) offers the better valuation at 12. 1x trailing P/E (20. 4x forward), making it the more compelling value choice. Analysts rate Gates Industrial Corporation plc (GTES) a "Buy" — based on 14 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, AGCO Corporation (AGCO) is the cheapest at 12.

1x versus Cummins Inc. at 33. 3x. On forward P/E, Astec Industries, Inc. is actually cheaper at 14. 2x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Gates Industrial Corporation plc wins at 0. 56x versus Cummins Inc. 's 2. 30x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Cummins Inc.

(CMI) delivered a total return of +168. 7%, compared to -20. 4% for Astec Industries, Inc. (ASTE). Over 10 years, the gap is even starker: DE returned +671. 0% versus ASTE's +22. 1%. 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 Astec Industries, Inc. 's 1. 63β — meaning ASTE is approximately 190% more volatile than DE relative to the S&P 500. On balance sheet safety, Astec Industries, Inc. (ASTE) carries a lower debt/equity ratio of 47% versus 2% for Deere & Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Astec Industries, Inc.

(ASTE) is pulling ahead at 8. 1% versus -13. 5% for AGCO Corporation (AGCO). On earnings-per-share growth, the picture is similar: Astec Industries, Inc. grew EPS 784. 2% year-over-year, compared to -27. 7% for Cummins Inc.. Over a 3-year CAGR, CMI leads at 6. 2% 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.

Deere & Company (DE) is the more profitable company, earning 11.

3% net margin versus 2. 8% for Astec Industries, 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 4. 6% for ASTE. At the gross margin level — before operating expenses — GTES leads at 40. 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, Gates Industrial Corporation plc (GTES) is the more undervalued stock at a PEG of 0. 56x versus Cummins Inc. 's 2. 30x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Astec Industries, Inc. (ASTE) trades at 14. 2x forward P/E versus 32. 5x for Deere & Company — 18. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GTES: 18. 7% to $30. 83.

In this comparison, CMI (1.

1% yield), DE (1. 1% yield), AGCO (1. 0% yield), ASTE (1. 0% yield) pay a dividend. GTES does not pay a meaningful dividend and should not be held primarily for income.

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, +671. 0% 10Y return). Gates Industrial Corporation plc (GTES) carries a higher beta of 1. 55 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (DE: +671. 0%, GTES: +40. 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.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: GTES is a small-cap quality compounder stock; ASTE is a small-cap quality compounder stock; CMI is a mid-cap quality compounder stock; AGCO is a small-cap deep-value stock; DE is a mid-cap quality compounder stock. ASTE, CMI, AGCO, DE pay a dividend while GTES does not, making them suitable for different income and tax situations. 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.