PCAR vs AGCO

For growth investors, AGCO Corporation (AGCO) is the stronger pick with -13.

5% revenue growth year-over-year, versus -15. 5% for PACCAR Inc (PCAR). AGCO Corporation (AGCO) offers the better valuation at 11. 7x trailing P/E (19. 8x forward), making it the more compelling value choice. Analysts rate AGCO Corporation (AGCO) a "Buy" — based on 29 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 11.

7x versus PACCAR Inc at 25. 1x. On forward P/E, PACCAR Inc is actually cheaper at 19. 8x — 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: PACCAR Inc wins at 1. 57x versus AGCO Corporation's 1. 72x — a reasonable growth-adjusted valuation.

Over the past 5 years, PACCAR Inc (PCAR) delivered a total return of +111.

6%, compared to -10. 7% for AGCO Corporation (AGCO). Over 10 years, the gap is even starker: PCAR returned +269. 7% versus AGCO's +173. 0%. 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), PACCAR Inc (PCAR) is the lower-risk stock at 1.

01β versus AGCO Corporation's 1. 10β — meaning AGCO is approximately 9% more volatile than PCAR relative to the S&P 500.

By revenue growth (latest reported year), AGCO Corporation (AGCO) is pulling ahead at -13.

5% versus -15. 5% for PACCAR Inc (PCAR). On earnings-per-share growth, the picture is similar: AGCO Corporation grew EPS 271. 4% year-over-year, compared to -42. 9% for PACCAR Inc. Over a 3-year CAGR, PCAR leads at -0. 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.

PACCAR Inc (PCAR) is the more profitable company, earning 8.

4% net margin versus 7. 2% for AGCO Corporation — meaning it keeps 8. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PCAR leads at 10. 4% versus 6. 9% for AGCO. At the gross margin level — before operating expenses — AGCO leads at 24. 8%, 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, PACCAR Inc (PCAR) is the more undervalued stock at a PEG of 1. 57x versus AGCO Corporation's 1. 72x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, PACCAR Inc (PCAR) trades at 19. 8x forward P/E versus 19. 8x for AGCO Corporation — 0. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AGCO: 11. 1% to $127. 29.

All stocks in this comparison pay dividends.

PACCAR Inc (PCAR) offers the highest yield at 3. 8%, versus 1. 0% for AGCO Corporation (AGCO).

For long-horizon retirement investors, PACCAR Inc (PCAR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

01), 3. 8% yield, +269. 7% 10Y return). Both have compounded well over 10 years (PCAR: +269. 7%, AGCO: +173. 0%), 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: PCAR is a mid-cap income-oriented stock; AGCO is a small-cap deep-value 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.