Columbus McKinnon (NASDAQ:CMCO) versus AGCO (NYSE:AGCO) Head-To-Head Contrast

Columbus McKinnon (NASDAQ:CMCO) and AGCO (NYSE:AGCO) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Columbus McKinnon	-21.25%	10.02%	2.36%
AGCO	5.15%	10.09%	3.58%

Dividends

Columbus McKinnon pays an annual dividend of $0.28 per share and has a dividend yield of 1.8%. AGCO pays an annual dividend of $1.20 per share and has a dividend yield of 1.2%. Columbus McKinnon pays out -3.8% of its earnings in the form of a dividend. AGCO pays out 16.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. AGCO has increased its dividend for 12 consecutive years. Columbus McKinnon is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Columbus McKinnon and AGCO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Columbus McKinnon	1	2	1	1	2.40
AGCO	2	7	5	0	2.21

Columbus McKinnon currently has a consensus target price of $23.00, indicating a potential upside of 43.84%. AGCO has a consensus target price of $123.92, indicating a potential upside of 19.87%. Given Columbus McKinnon’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Columbus McKinnon is more favorable than AGCO.

Earnings & Valuation

This table compares Columbus McKinnon and AGCO”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Columbus McKinnon	$1.19 billion	0.39	-$229.54 million	($7.46)	-2.14
AGCO	$10.08 billion	0.72	$726.50 million	$7.23	14.30

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

Volatility and Risk

Columbus McKinnon has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, AGCO has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Institutional & Insider Ownership

96.0% of Columbus McKinnon shares are held by institutional investors. Comparatively, 78.8% of AGCO shares are held by institutional investors. 2.1% of Columbus McKinnon shares are held by company insiders. Comparatively, 0.6% of AGCO shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

AGCO beats Columbus McKinnon on 10 of the 18 factors compared between the two stocks.

About Columbus McKinnon

Columbus McKinnon Corporation designs, manufactures, and markets motion solutions for moving, lifting, positioning, and securing materials worldwide. It offers manual, battery, electric, and air hoists; steel, rack, and pinion jacks; winches, hydraulic jacks and tools, trolleys and its clamps, and lifting tables; skates and heavy load moving systems; material handling equipment; mobile, workplace, and jib cranes; crane components and kits; and below-the-hook lifting devices, lifting slings, and lashing systems. The company also provides linear motion products, elevator and mining drives, brakes, radio controls, collision avoidance systems, regenerative drives, AC and DC drive and motor control systems, DC motor and magnet control systems, and conductor bar systems; and underfloor lifting systems, lifting jacks, roof working platforms, hybrid lifting systems, turntables, bogie axle exchange and lifting systems, bogie lift and turn devices, and workshop equipment. In addition, it offers fabric and modular belt, and sanitary, stainless steel conveyors; pallet systems; parts and belts; rotary unions and swivel joints; check valves; accumulation and transfer tables, motion control systems, and steel and flexible chains; hooks, shackles, textile slings, clamps, and load binders; actuators and rotary unions; and push button pendant stations, collision avoidance, and power delivery subsystems. It serves EV production and aerospace, energy and utilities, process industries, industrial automation, construction and infrastructure, food and beverage, entertainment, life sciences, consumer packaged goods, and e-commerce/supply chain/warehousing markets. It offers its products to end users directly, and through distributors, independent crane builders, material handling specialists and integrators, original equipment manufacturers, government agencies, and engineering procurement and construction firms. The company was founded in 1875 and is based in Charlotte, North Carolina.

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.