AGCO (AGCO) versus Arts-Way Manufacturing (ARTW) Head to Head Review

AGCO (NYSE:AGCO) and Arts-Way Manufacturing (NASDAQ:ARTW) are both industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Valuation & Earnings

This table compares AGCO and Arts-Way Manufacturing’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AGCO $8.31 billion 0.52 $186.40 million $3.02 17.93
Arts-Way Manufacturing $20.72 million 0.44 -$1.63 million N/A N/A

AGCO has higher revenue and earnings than Arts-Way Manufacturing.

Dividends

AGCO pays an annual dividend of $0.60 per share and has a dividend yield of 1.1%. Arts-Way Manufacturing does not pay a dividend. AGCO pays out 19.9% of its earnings in the form of a dividend. AGCO has increased its dividend for 4 consecutive years.

Volatility & Risk

AGCO has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Arts-Way Manufacturing has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for AGCO and Arts-Way Manufacturing, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AGCO 3 9 2 0 1.93
Arts-Way Manufacturing 0 0 0 0 N/A

AGCO presently has a consensus price target of $71.15, indicating a potential upside of 31.43%. Given AGCO’s higher possible upside, analysts clearly believe AGCO is more favorable than Arts-Way Manufacturing.

Insider & Institutional Ownership

85.1% of AGCO shares are owned by institutional investors. Comparatively, 3.5% of Arts-Way Manufacturing shares are owned by institutional investors. 16.7% of AGCO shares are owned by company insiders. Comparatively, 49.8% of Arts-Way Manufacturing shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares AGCO and Arts-Way Manufacturing’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AGCO 2.44% 9.31% 3.51%
Arts-Way Manufacturing -13.46% -17.06% -11.23%

Summary

AGCO beats Arts-Way Manufacturing on 12 of the 14 factors compared between the two stocks.

AGCO Company Profile

AGCO Corporation manufactures and distributes agricultural equipment and related replacement parts worldwide. The company offers high horsepower tractors for larger farms, primarily for row crop production; 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, and residential uses. It also offers combines for harvesting grain crops, such as corn, wheat, soybeans, and rice; and application equipment, including 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. In addition, the company offers hay tools and forage equipment comprising 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, it offers 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; and planters and other planting equipment, and loaders. Additionally, it offers grain storage bins and related drying and handling equipment systems, as well as seed-processing systems, swine and poultry feed storage and delivery, ventilation and watering systems, and egg production systems and broiler production equipment; and replacement parts, as well as produces diesel engines, gears, and generating sets. It markets its products under the Challenger, Fendt, GSI, Massey Ferguson, and Valtra brands through a network of independent dealers and distributors. AGCO Corporation was founded in 1990 and is headquartered in Duluth, Georgia.

Arts-Way Manufacturing Company Profile

Art's-Way Manufacturing Co., Inc. manufactures and sells agricultural equipment, specialized modular science buildings, and steel cutting tools worldwide. The company operates through three segments: Agricultural Products, Modular Buildings, and Tools. The Agricultural Products segment offers specialized farm machineries, including portable and stationary animal feed processing equipment and related attachments; hay and forage equipment; portable grain augers; manure spreaders; sugar beet harvesting equipment; land maintenance equipment; moldboard plows; potato harvesters; reels for combines and swathers; silage blowers and reels; and after-market service parts under the Art's-Way, Miller Pro, Roda, M&W, Badger, and UHC by Art's-Way brands. The Modular Buildings segment produces and sells swine buildings and complex containment research laboratories, as well as research facilities for academic research institutions, government research and diagnostic centers, public health institutions, and private research and pharmaceutical companies. The Tools segment offers standard single point brazed carbide tipped tools, and polycrystalline diamond and cubic boron nitride inserts and tools. The company markets and sells its products through independent farm equipment dealers, manufacturers' representatives, direct sales, and original equipment manufacturer sales channels. Art's-Way Manufacturing Co., Inc. was founded in 1956 and is based in Armstrong, Iowa.

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