AGCO (NYSE:AGCO – Get Free Report) and Ampco-Pittsburgh (NYSE:AP – Get Free Report) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Institutional and Insider Ownership
78.8% of AGCO shares are held by institutional investors. Comparatively, 49.2% of Ampco-Pittsburgh shares are held by institutional investors. 0.6% of AGCO shares are held by company insiders. Comparatively, 23.5% of Ampco-Pittsburgh shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares AGCO and Ampco-Pittsburgh’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AGCO | 5.15% | 10.09% | 3.58% |
| Ampco-Pittsburgh | -13.84% | -3.53% | -0.38% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AGCO | $10.08 billion | 0.83 | $726.50 million | $7.23 | 16.59 |
| Ampco-Pittsburgh | $434.17 million | 0.40 | -$66.07 million | ($2.93) | -2.84 |
AGCO has higher revenue and earnings than Ampco-Pittsburgh. Ampco-Pittsburgh is trading at a lower price-to-earnings ratio than AGCO, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for AGCO and Ampco-Pittsburgh, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AGCO | 3 | 6 | 5 | 0 | 2.14 |
| Ampco-Pittsburgh | 1 | 0 | 0 | 0 | 1.00 |
AGCO currently has a consensus price target of $122.17, indicating a potential upside of 1.85%. Given AGCO’s stronger consensus rating and higher possible upside, equities analysts plainly believe AGCO is more favorable than Ampco-Pittsburgh.
Risk and Volatility
AGCO has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Ampco-Pittsburgh has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.
Summary
AGCO beats Ampco-Pittsburgh on 12 of the 14 factors compared between the two stocks.
About AGCO
AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. It offers horsepower tractors for row crop production, soil cultivation, planting, land leveling, seeding, and commercial hay operations; utility tractors for small- and medium-sized farms, as well as for dairy, livestock, orchards, and vineyards; and compact tractors for small farms, specialty agricultural industries, landscaping, equestrian, and residential uses. The company also provides grain storage bins and related drying and handling equipment systems; seed-processing systems; swine and poultry feed storage and delivery; ventilation and watering systems; and egg production systems and broiler production equipment. In addition, it offers round and rectangular balers, loader wagons, self-propelled windrowers, forage harvesters, disc mowers, spreaders, rakes, tedders, and mower conditioners for harvesting and packaging vegetative feeds used in the beef cattle, dairy, horse, and renewable fuel industries. Further, the company provides implements, including disc harrows leveling seed beds and mixing chemicals with the soils; heavy tillage to break up soil and mix crop residue into topsoil; field cultivators that prepare smooth seed bed and destroy weeds; drills for small grain seeding; planters and other planting equipment; and loaders. Additionally, it offers combines for harvesting grain crops, such as corn, wheat, soybeans, and rice; and application equipment, such as self-propelled, three- and four-wheeled vehicles, and related equipment for liquid and dry fertilizers and crop protection chemicals, and for after crops emerge from the ground, as well as produces diesel engines, gears, and generating sets. The company markets its products under the Fendt, GSI, Massey Ferguson, Precision Planting, and Valtra brands through a network of independent dealers and distributors. AGCO Corporation was founded in 1990 and is headquartered in Duluth, Georgia.
About Ampco-Pittsburgh
Ampco-Pittsburgh Corporation, together with its subsidiaries, engages in manufacture and sale of specialty metal products and customized equipment to commercial and industrial users worldwide. The company operates through Forged and Cast Engineered Products (FCEP); and Air and Liquid Processing (ALP) segments. The FCEP segment produces forged hardened steel rolls, cast rolls and, forged engineered products that are used in cold rolling mills by producers of steel, aluminum, and other metals; cast rolls for hot strip mills, medium/heavy section mills, roughing mills, and plate mills; and forged engineered products for narrow and wide strip and aluminum mills, back-up rolls for narrow strip mills, and leveling rolls and shafts. The ALP segment produces custom-engineered finned tube heat exchange coils and related heat transfer products for various industries, including OEM/commercial, nuclear power generation, and industrial manufacturing; custom-designed air handling systems for institutional, pharmaceutical, and general industrial building markets; and manufacture centrifugal pumps for the fossil fueled power generation, marine defense, and industrial refrigeration industries. Ampco-Pittsburgh Corporation was incorporated in 1929 and is headquartered in Carnegie, Pennsylvania.
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