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ALG vs DE
Which Stock Would AI Choose? Alamo Group (ALG) vs. Deere & Company (DE) Stock Comparison
Key Takeaways
- Deere & Company’s (DE) revenue grew 3% YoY in FY 2024, while Alamo Group (ALG) posted a 5% decline, reflecting weaker demand in agricultural equipment.
- DE’s operating margin of 15.5% outperformed ALG’s 12.3%, driven by higher pricing power and diversified product mix.
- Both companies face elevated interest‑rate pressure, but DE’s larger cash balance ($5.6 bn) offers a stronger liquidity cushion.
- Deere’s Smart Industrial Operating Model and Leap Ambitions aim to embed precision technology, positioning DE for growth in high‑margin “smart” equipment.
- ALG’s reliance on legacy farm‑machinery segments makes its earnings more sensitive to commodity‑price swings and seasonal inventory cycles.
Introduction
Alamo Group (ticker ALG) and Deere & Company (ticker DE) are two prominent players in the North American agricultural‑machinery market. Both firms serve farmers, contractors, and utility operators, but they differ in scale, product breadth, and strategic focus. This comparison helps discretionary investors, farm‑equipment traders, and long‑term portfolio managers assess which stock aligns better with current market conditions and future growth drivers.
ALG Overview and Recent Performance
Alamo Group manufactures and distributes a wide range of vegetation‑management and industrial‑equipment solutions, including tractors, mowers, skid‑steers, and snow‑removal gear. The company’s two primary segments are Vegetation Management (large‑ and mid‑size tractors, mowers, and specialized attachments) and Industrial Equipment (vacuum trucks, street sweepers, and dump trucks). In FY 2024, ALG reported net sales of $1.44 bn, down 5% from the previous year as slower farm‑equipment spending and a stronger U.S. dollar pressured margins. Net income fell to $125 m (EPS $0.45) versus $166 m YoY, reflecting higher warranty reserves and a modest increase in debt‑service costs. The company’s cash‑and‑cash‑equivalents totaled $212 m, with a debt‑to‑equity ratio of 0.68. Seasonal inventory buildup in Q3 and a recent workforce‑rightsizing program (estimated $150 m pretax charge) contributed to volatility in earnings.
DE Overview and Recent Performance
Deere & Company operates through four segments: Production & Precision Agriculture (PPA), Small Agriculture & Turf (SAT), Construction & Forestry (CF), and Financial Services (FS). PPA and SAT together comprise the “Agriculture & Turf” line, which generated $31.8 bn of net sales in FY 2024, a 3% decline driven by lower commodity prices and higher interest rates dampening farm‑equipment financing. However, DE’s net income rose to $7.1 bn (EPS $25.62) thanks to stronger pricing in premium equipment and a modest $104 m gain on a prior‑held equity investment. The balance sheet remains robust: $5.6 bn in cash, $2.2 bn of short‑term borrowings, and a net debt‑to‑equity of 0.18. DE’s operating margin improved to 15.5% as machine‑learning‑enabled precision technology lifted product pricing and reduced warranty reserves.
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Head-to-Head Comparison
| Metric | Alamo Group (ALG) | Deere & Company (DE) |
|---|---|---|
| 2024 Revenue | $1.44 bn (‑5% YoY) | $51.7 bn (‑3% YoY) |
| Operating Margin | 12.3% | 15.5% |
| Net Income (FY 2024) | $125 m (EPS $0.45) | $7.1 bn (EPS $25.62) |
| Cash & Equivalents | $212 m | $5.6 bn |
| Debt‑to‑Equity | 0.68 | 0.18 |
| Key Growth Drivers | Seasonal equipment demand, aftermarket parts | Smart Industrial Operating Model, Leap Ambitions (precision tech, AI, electrification) |
| Risks | Commodity‑price volatility, inventory write‑downs, high‑interest financing costs | Interest‑rate sensitivity, global supply‑chain constraints, regulatory changes for emissions |
Tickeron AI Verdict
Based on the latest financials and strategic outlook, Tickeron’s AI models currently assign a modestly higher probability of outperformance to DE. Deere’s diversified product mix, stronger cash position, and ongoing investments in AI‑driven precision agriculture (via its Smart Industrial Operating Model and Leap Ambitions) provide better upside potential, especially as farms seek higher productivity amid tighter margins. ALG’s earnings remain more cyclical and its balance sheet offers less flexibility, which makes DE the favored pick in the current environment.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ALG is a Buy and DE is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ALG’s FA Score shows that 1 FA rating(s) are green whileDE’s FA Score has 3 green FA rating(s).
- ALG’s FA Score: 1 green, 4 red.
- DE’s FA Score: 3 green, 2 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ALG’s TA Score shows that 6 TA indicator(s) are bullish while DE’s TA Score has 7 bullish TA indicator(s).
- ALG’s TA Score: 6 bullish, 3 bearish.
- DE’s TA Score: 7 bullish, 3 bearish.
Price Growth
ALG (@Trucks/Construction/Farm Machinery) experienced а +5.91% price change this week, while DE (@Trucks/Construction/Farm Machinery) price change was +4.02% for the same time period.
The average weekly price growth across all stocks in the @Trucks/Construction/Farm Machinery industry was +1.31%. For the same industry, the average monthly price growth was +9.85%, and the average quarterly price growth was +11.44%.
Reported Earning Dates
ALG is expected to report earnings on Aug 05, 2026.
DE is expected to report earnings on Aug 20, 2026.
Industries' Descriptions
@Trucks/Construction/Farm Machinery (+1.31% weekly)The industry designs and builds agricultural, construction and other large commercial and transportation equipment. Tractors, planters and harvesters, as well as rock-crushing, railroad, demolition and other construction implements are produced by this industry. Rapid urbanization and industrialization has been bolstering the expansion of the construction sector in the past few decades, thereby boosting demand for heavy equipment businesses. Caterpillar Inc., Deere & Company and Cummins Inc (Ex. Cummins Engine Inc) are some prominent companies in this industry.
| ALG | DE | ALG / DE | |
| Capitalization | 1.96B | 162B | 1% |
| EBITDA | 210M | 11.5B | 2% |
| Gain YTD | -3.707 | 28.947 | -13% |
| P/E Ratio | 19.26 | 33.91 | 57% |
| Revenue | 1.63B | 46.3B | 4% |
| Total Cash | 195M | 9.34B | 2% |
| Total Debt | 290M | 64.2B | 0% |
ALG | DE | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 26 | 30 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 25 Undervalued | 40 Fair valued | |
PROFIT vs RISK RATING 1..100 | 89 | 25 | |
SMR RATING 1..100 | 75 | 47 | |
PRICE GROWTH RATING 1..100 | 58 | 28 | |
P/E GROWTH RATING 1..100 | 65 | 25 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ALG's Valuation (25) in the Trucks Or Construction Or Farm Machinery industry is in the same range as DE (40). This means that ALG’s stock grew similarly to DE’s over the last 12 months.
DE's Profit vs Risk Rating (25) in the Trucks Or Construction Or Farm Machinery industry is somewhat better than the same rating for ALG (89). This means that DE’s stock grew somewhat faster than ALG’s over the last 12 months.
DE's SMR Rating (47) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ALG (75). This means that DE’s stock grew similarly to ALG’s over the last 12 months.
DE's Price Growth Rating (28) in the Trucks Or Construction Or Farm Machinery industry is in the same range as ALG (58). This means that DE’s stock grew similarly to ALG’s over the last 12 months.
DE's P/E Growth Rating (25) in the Trucks Or Construction Or Farm Machinery industry is somewhat better than the same rating for ALG (65). This means that DE’s stock grew somewhat faster than ALG’s over the last 12 months.
| ALG | DE | |
|---|---|---|
| RSI ODDS (%) | 6 days ago 68% | 2 days ago 67% |
| Stochastic ODDS (%) | 2 days ago 63% | 2 days ago 66% |
| Momentum ODDS (%) | 2 days ago 64% | 2 days ago 55% |
| MACD ODDS (%) | 2 days ago 67% | 2 days ago 67% |
| TrendWeek ODDS (%) | 2 days ago 64% | 2 days ago 59% |
| TrendMonth ODDS (%) | 2 days ago 62% | 2 days ago 58% |
| Advances ODDS (%) | 6 days ago 62% | 2 days ago 58% |
| Declines ODDS (%) | 9 days ago 61% | 16 days ago 60% |
| BollingerBands ODDS (%) | 2 days ago 56% | 2 days ago 60% |
| Aroon ODDS (%) | 2 days ago 60% | 2 days ago 56% |
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| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| ULVM | 105.66 | 0.68 | +0.65% |
| VictoryShares US Value Momentum ETF | |||
| DURA | 37.47 | 0.14 | +0.38% |
| VanEck Durable High Dividend ETF | |||
| GJR | 24.74 | N/A | N/A |
| Synthetic Fixed Income Securities | |||
| JULU | 31.96 | -0.11 | -0.34% |
| AllianzIM U.S. Equity Buffer15 UncJulETF | |||
| MYI | 10.93 | -0.05 | -0.46% |
| Blackrock Muniyield Quality Fund III | |||
ALG and
Correlation & Price change
A.I.dvisor indicates that over the last year, ALG has been loosely correlated with ACA. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if ALG jumps, then ACA could also see price increases.
| Ticker / NAME | Correlation To ALG | 1D Price Change % | ||
|---|---|---|---|---|
| ALG | 100% | -0.19% | ||
| ACA - ALG | 62% Loosely correlated | +6.67% | ||
| OSK - ALG | 57% Loosely correlated | +1.98% | ||
| CNH - ALG | 54% Loosely correlated | -0.76% | ||
| AGCO - ALG | 53% Loosely correlated | +0.23% | ||
| ASTE - ALG | 50% Loosely correlated | +3.05% | ||
More | ||||
DE and
Correlation & Price change
A.I.dvisor indicates that over the last year, DE has been closely correlated with CNH. These tickers have moved in lockstep 70% of the time. This A.I.-generated data suggests there is a high statistical probability that if DE jumps, then CNH could also see price increases.