Head to Head Review: ASV (ASV) vs. AGCO (AGCO)

ASV (NASDAQ: ASV) and AGCO (NYSE:AGCO) are both heavy machinery & vehicles – nec companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Insider & Institutional Ownership

41.2% of ASV shares are held by institutional investors. Comparatively, 82.9% of AGCO shares are held by institutional investors. 16.6% of AGCO shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ASV and AGCO, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ASV 0 0 3 0 3.00
AGCO 3 9 4 0 2.06

ASV currently has a consensus price target of $10.92, suggesting a potential upside of 18.66%. AGCO has a consensus price target of $71.57, suggesting a potential downside of 1.88%. Given ASV’s stronger consensus rating and higher possible upside, equities research analysts clearly believe ASV is more favorable than AGCO.

Dividends

AGCO pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. ASV does not pay a dividend. AGCO pays out 22.0% of its earnings in the form of a dividend. AGCO has raised its dividend for 3 consecutive years.

Profitability

This table compares ASV and AGCO’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ASV 0.33% -0.78% -0.40%
AGCO 2.59% 7.50% 2.90%

Valuation and Earnings

This table compares ASV and AGCO’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ASV $103.80 million 0.87 -$1.17 million $0.06 153.33
AGCO $7.41 billion 0.78 $160.10 million $2.54 28.72

AGCO has higher revenue and earnings than ASV. AGCO is trading at a lower price-to-earnings ratio than ASV, indicating that it is currently the more affordable of the two stocks.

Summary

AGCO beats ASV on 11 of the 16 factors compared between the two stocks.

ASV Company Profile

ASV Holdings, Inc. (ASV) is engaged in designing and manufacturing a range of compact track loader (CTL) and skid steer loader (SSL) equipment for construction, agricultural and forestry industries. The Company manufactures Posi-Track, rubber-tracked CTLs with multi-level suspension. CTLs are compact tracked vehicles with lift arms that functions in wet, muddy, snowy or harsh conditions and where there are slopes and grades, such as in a construction, agriculture or forestry environment. SSLs are wheeled vehicles with lift arms that can be outfitted with the same attachments as CTLs and can therefore be used in the same applications. The Company also serves as a private label original equipment manufacturer (OEM) for several manufacturers. It provides pre- and post-sale dealer support, after-sale technical support and replacement parts. The Company markets through a distribution network in North America, Australia and New Zealand under the ASV and Terex brands.

AGCO Company Profile

AGCO Corporation is a manufacturer and distributor of agricultural equipment and related replacement parts. The Company sells a range of agricultural equipment, including tractors, combines, self-propelled sprayers, hay tools, forage equipment, seeding and tillage equipment, implements, and grain storage and protein production systems. The Company’s segments are North America, South America, Europe/Middle East, and Asia/Pacific/Africa. The Company’s products are marketed under various brands, including Challenger, Fendt, GSI, Massey Ferguson and Valtra. As of December 31, 2016, the Company distributed its products through over 3,000 independent dealers and distributors in more than 150 countries. In addition, the Company also provides retail and wholesale financing through its finance joint ventures with Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank). The Company’s AGCO Power engines division produces diesel engines, gears and generating sets.

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