AGCO (AGCO Corp) vs S&P 500 Comparison

AGCO

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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AGCO

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

AGCO

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

AGCO

CNHI

6326

TTC

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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AGCO Corp
Glance View

Economic Moat

None

Market Cap

6.8B USD

Industry

Machinery

AGCO Corporation, nestled in the heart of agricultural innovation, has cultivated a robust position in the global farming industry. Founded in 1990 and headquartered in Duluth, Georgia, AGCO thrives on its ability to manufacture and distribute agricultural equipment, offering a broad spectrum of products ranging from tractors and combines to hay tools and grain storage systems. At its core, the company operates through a network of well-known brands such as Massey Ferguson, Fendt, Valtra, and Challenger. Each brand brings a storied history and a loyal customer base, allowing AGCO to leverage its comprehensive product lineup to serve a vast array of farming needs across North America, Europe, South America, and Asia-Pacific regions. The company's revenue funnel is ingeniously crafted through the sales of its specialized machinery, aftermarket parts, and related services. AGCO focuses keenly on innovation, adopting cutting-edge technology to enhance agricultural productivity and sustainability—an approach echoed in its launch of precision farming tools and smart farming solutions. These technological advances help farmers maximize yields and minimize input costs, thus strengthening AGCO's relationships with its customers. Additionally, AGCO's strategic acquisitions and investments in research and development fortify its market standing, enabling it to flourish in a competitive landscape where efficiency and sustainability are paramount. By continually evolving its offerings and maintaining robust dealer connections, AGCO ensures a steady flow of revenue streams, cementing its role as a significant player in the global agriculture sector.

View AGCO Analysis

AGCO Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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JP		Kubota Corp TSE:6326	Add
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AGCO

vs

S&P 500

Stocks Performance
AGCO vs S&P 500

Performance Gap
AGCO vs S&P 500

Performance By Year
AGCO vs S&P 500

Competitors Performance
AGCO Corp vs Peers

AGCO Corp
Glance View

Company

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AGCO vs S&P 500

Stocks Performance AGCO vs S&P 500

Performance Gap AGCO vs S&P 500

Performance By Year AGCO vs S&P 500

Competitors Performance AGCO Corp vs Peers

AGCO Corp Glance View

Company

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Stocks

AGCO

vs

S&P 500

Stocks Performance
AGCO vs S&P 500

Performance Gap
AGCO vs S&P 500

Performance By Year
AGCO vs S&P 500

Competitors Performance
AGCO Corp vs Peers

AGCO Corp
Glance View