Head-To-Head Analysis: Manitowoc Company, Inc. (The) (MTW) vs. AGCO Corporation (AGCO)

Manitowoc Company, Inc. (The) (NYSE: MTW) and AGCO Corporation (NYSE:AGCO) are both industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for Manitowoc Company, Inc. (The) and AGCO Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manitowoc Company, Inc. (The) 0 6 3 0 2.33
AGCO Corporation 2 10 3 0 2.07

Manitowoc Company, Inc. (The) currently has a consensus target price of $7.38, indicating a potential downside of 21.03%. AGCO Corporation has a consensus target price of $67.83, indicating a potential downside of 9.01%. Given AGCO Corporation’s higher possible upside, analysts plainly believe AGCO Corporation is more favorable than Manitowoc Company, Inc. (The).

Insider and Institutional Ownership

81.0% of Manitowoc Company, Inc. (The) shares are held by institutional investors. Comparatively, 80.7% of AGCO Corporation shares are held by institutional investors. 2.8% of Manitowoc Company, Inc. (The) shares are held by company insiders. Comparatively, 16.6% of AGCO Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Manitowoc Company, Inc. (The) and AGCO Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Manitowoc Company, Inc. (The) $1.43 billion 0.92 -$3.00 million ($1.51) -6.19
AGCO Corporation $7.65 billion 0.78 $604.20 million $2.28 32.70

AGCO Corporation has higher revenue and earnings than Manitowoc Company, Inc. (The). Manitowoc Company, Inc. (The) is trading at a lower price-to-earnings ratio than AGCO Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

AGCO Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Manitowoc Company, Inc. (The) does not pay a dividend. AGCO Corporation pays out 24.6% of its earnings in the form of a dividend. AGCO Corporation has increased its dividend for 3 consecutive years.

Volatility and Risk

Manitowoc Company, Inc. (The) has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, AGCO Corporation has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Profitability

This table compares Manitowoc Company, Inc. (The) and AGCO Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manitowoc Company, Inc. (The) -14.63% -14.85% -5.70%
AGCO Corporation 2.40% 6.84% 2.67%

Summary

AGCO Corporation beats Manitowoc Company, Inc. (The) on 10 of the 15 factors compared between the two stocks.

About Manitowoc Company, Inc. (The)

The Manitowoc Company, Inc. is a provider of engineered lifting equipment for the construction industry. The Company operates through the Crane business segment. It designs, manufactures and distributes a line of crawler-mounted lattice-boom cranes, which it sells under the Manitowoc brand name. It also designs and manufactures a line of top-slewing and self-erecting tower cranes, which it sells under the Potain brand name. It designs and manufactures mobile telescopic cranes, which it sells under the Grove brand name and a line of hydraulically powered telescopic boom trucks, which it sells under the National Crane brand name. It also provides crane product parts and services and crane rebuilding, remanufacturing and training services, which are delivered under the Manitowoc Crane Care brand name. Its crane products are used in a range of applications, including energy production/distribution and utilities, petrochemical and industrial projects, and infrastructure applications.

About AGCO Corporation

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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