ASV Holdings (NYSE: ASV) and AGCO Corporation (NYSE:AGCO) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
ASV Holdings 5.12% 11.75% 6.11%
AGCO Corporation 2.40% 6.84% 2.67%

Insider and Institutional Ownership

80.7% of AGCO Corporation shares are owned by institutional investors. 16.6% of AGCO Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ASV Holdings 0 0 2 0 3.00
AGCO Corporation 1 11 4 0 2.19

ASV Holdings presently has a consensus target price of $10.75, indicating a potential upside of 32.23%. AGCO Corporation has a consensus target price of $67.75, indicating a potential downside of 8.16%. Given ASV Holdings’ stronger consensus rating and higher probable upside, equities research analysts plainly believe ASV Holdings is more favorable than AGCO Corporation.

Dividends

AGCO Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. ASV Holdings does not pay a dividend. AGCO Corporation pays out 24.6% of its earnings in the form of a dividend. AGCO Corporation has raised its dividend for 3 consecutive years.

Earnings and Valuation

This table compares ASV Holdings and AGCO Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
ASV Holdings $110.31 million 0.72 $10.71 million N/A N/A
AGCO Corporation $7.65 billion 0.77 $604.20 million $2.28 32.36

AGCO Corporation has higher revenue and earnings than ASV Holdings.

Summary

AGCO Corporation beats ASV Holdings on 8 of the 15 factors compared between the two stocks.

About ASV Holdings

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.

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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