AGCO (NYSE:AGCO – Get Free Report) and LPKF Laser & Electronics (OTCMKTS:LPKFF – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Earnings and Valuation
This table compares AGCO and LPKF Laser & Electronics”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AGCO | $10.35 billion | 0.68 | $726.50 million | $7.23 | 13.83 |
| LPKF Laser & Electronics | N/A | N/A | N/A | $0.31 | 54.86 |
Institutional and Insider Ownership
78.8% of AGCO shares are held by institutional investors. Comparatively, 25.5% of LPKF Laser & Electronics shares are held by institutional investors. 0.6% of AGCO shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and price targets for AGCO and LPKF Laser & Electronics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AGCO | 2 | 7 | 4 | 0 | 2.15 |
| LPKF Laser & Electronics | 0 | 0 | 0 | 0 | 0.00 |
AGCO presently has a consensus target price of $120.33, indicating a potential upside of 20.35%. Given AGCO’s stronger consensus rating and higher possible upside, analysts clearly believe AGCO is more favorable than LPKF Laser & Electronics.
Dividends
AGCO pays an annual dividend of $1.20 per share and has a dividend yield of 1.2%. LPKF Laser & Electronics pays an annual dividend of $0.18 per share and has a dividend yield of 1.1%. AGCO pays out 16.6% of its earnings in the form of a dividend. LPKF Laser & Electronics pays out 58.8% 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 raised its dividend for 12 consecutive years. AGCO is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares AGCO and LPKF Laser & Electronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AGCO | 5.15% | 10.09% | 3.58% |
| LPKF Laser & Electronics | N/A | N/A | N/A |
Summary
AGCO beats LPKF Laser & Electronics on 13 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 LPKF Laser & Electronics
LPKF Laser & Electronics SE, together with its subsidiaries, develops, manufactures, and sells laser-based solutions for the technology industry worldwide. The company operates through four segments: Development, Electronics, Welding, and Solar. The Development segment supplies electronic equipment for manufacturing and assembly of printed circuit board prototypes for public organizations, such as research institutes, universities, and schools, as well as development departments of industrial companies. The Electronics segment provides production systems for cutting print stencils and laser systems for cutting and drilling of rigid and flexible circuit boards. This segment also consists of laser induced deep etching (LIDE) technology that develops and sells laser systems for high-precision structuring of thin glass; and production of glass components. The Welding segment comprises laser systems, and thermal process monitoring and software for welding plastics; develops and sells standardized standalone and integration systems; and tailored solutions for customers. The Solar segment develops and produces laser scribers that are used in structuring thin-film solar cells for various thin-film technologies for solar cell manufacturers; and includes laser systems for the digital printing of functional pastes and inks. The company's products are used in the electronics, automotive supply, solar, and semiconductor industries, as well as medical technology, biotechnology, research institutions, and universities. LPKF Laser & Electronics SE was founded in 1976 and is headquartered in Garbsen, Germany.
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