Which Is a Better Investment, Deere & Company or Toro Co Stock?

By AAII Staff
September 09, 2026
Large versus logo comparing two stocks in the same industry
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Sifting through countless of stocks in the Machinery industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in The Toro Company or Deere & Company because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how The Toro Company and Deere & Company compare based on key financial metrics to determine which better meets your investment needs.

About The Toro Company and Deere & Company

The Toro Company provides professional turf maintenance equipment and services. It operates through Professional and Residential segments. It offers riding and walking mowers, greens rollers, all-wheel drive articulating tractors, turf sprayer, utility vehicles, aeration, bunker maintenance, and other turf equipment; sprinkler heads, controllers, turf sensors, valves, and operating software; and riding rotary and reel mowers and attachments, infield grooming equipment, multipurpose vehicles, debris management products, all-wheel drive articulating tractors, sidewalk snow and ice solution vehicles, and related attachments and accessories. The company also provides zero-turn radius riding mowers, walk behind and stand-on mowers, turf application and renovation, tree care, horizontal directional drills, and drilling guidance and support equipment; walk and ride trenchers, vacuum excavators, utility locators and inspection systems, pipe rehabilitation, and replacement solutions; drive chucks and sub savers, drill pipe, starter rods and quick connects, bits and blades, rock tools, reamers, and swivels; and snow removal and ice management solutions. In addition, it offers rotors, sprinkler bodies and nozzles, valves, drip tubing and subsurface irrigation, and electric control devices; wired and wireless rain, freeze, climate, and soil sensors; drip tape, polyethylene tubing, drip line, emitters, filters, fitting, and software related solutions; stand-on skid steers, walk-behind trenchers, stump grinders, material handlers, and other concrete construction equipment; walk power and zero-turn riding mowers, and snow throwers; and grass and hedge trimmers, blower-vacuums, chainsaws, edgers, cultivators, string mowers, and related parts and accessories. The company sells its products through distributors, dealers, mass retailers, hardware retailers, equipment rental and home centers, and online. The company was founded in 1914 and is headquartered in Bloomington, Minnesota.

Deere & Company engages in the manufacture and distribution of various equipment worldwide. The company operates through four segments: Production and Precision Agriculture, Small Agriculture and Turf, Construction and Forestry, and Financial Services. The Production and Precision Agriculture segment provides four-wheel-drive track and row crop tractors, harvesters, cotton pickers and strippers, sugarcane harvesters and loaders, soil preparation, tillage, seeding, and crop care equipment, as well as application equipment, including sprayers and nutrient management, soil preparation machinery, and related attachments and service parts. The Small Agriculture and Turf segment offers specialty, utility, and compact tractors; self-propelled forage harvesters and attachments; rotary mowers, hay and forage equipment, and utility vehicles; turf and utility equipment, including riding lawn, commercial mowing, and golf course equipment, and utility vehicles, as well as implements for mowing, tilling, snow and debris handling, aerating, residential, commercial, golf, and sports turf care applications. The Construction and Forestry segment provides backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, motor graders, articulated dump trucks, skid-steer loaders, milling machines, recyclers, slipform and asphalt pavers, surface miners, compactors, tandem, static rollers, mobile crushers and screens, mobile and stationary asphalt plants, and log harvesters; and road building and rehabilitation equipment. The Financial Services segment finances sales and leases agriculture and turf, and construction and forestry equipment. It also offers wholesale financing to dealers of the foregoing equipment; and extended equipment warranties. Deere & Company has a strategic partnership with Tarter USA to develop and produce flex wing rotary cutters. The company was founded in 1837 and is headquartered in Moline, Illinois.

Latest Machinery and The Toro Company, Deere & Company Stock News

As of September 8, 2026, The Toro Company had a $9.0 billion market capitalization, compared to the Machinery median of $4.3 million. The Toro Company’s stock is NA in 2026, NA in the previous five trading days and up 16.06% in the past year.

Currently, The Toro Company’s price-earnings ratio is 25.4. The Toro Company’s trailing 12-month revenue is $4.8 billion with a 7.6% net profit margin. Year-over-year quarterly sales growth most recently was 8.4%. Analysts expect adjusted earnings to reach $4.638 per share for the current fiscal year. The Toro Company currently has a 1.6% dividend yield.

Currently, Deere & Company’s price-earnings ratio is 37.8. Deere & Company’s trailing 12-month revenue is $47.9 billion with a 10.2% net profit margin. Year-over-year quarterly sales growth most recently was 4.9%. Analysts expect adjusted earnings to reach $18.091 per share for the current fiscal year. Deere & Company currently has a 1.0% dividend yield.

How We Compare The Toro Company and Deere & Company Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at The Toro Company and Deere & Company’s stock grades to see how they measure up against one another.

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The Toro Company and Deere & Company Growth Grades

Company Ticker Growth
The Toro Company TTC A
Deere & Company DE C

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

The Toro Company has a Growth Score of 95, which is Very Strong. Deere & Company has a Growth Score of 56, which is Average.

The Growth Grade Winner: The Toro Company

As you can clearly see from the Growth Grade breakdown above, The Toro Company has a more attractive growth grade than Deere & Company. For investors who focus solely on how a company is growing relative to other companies in the same industry, The Toro Company could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

The Toro Company and Deere & Company’s Quality Grades

Company Ticker Quality
The Toro Company TTC A
Deere & Company DE B

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

The Toro Company has a Quality Score of 98, which is Very Strong. Deere & Company has a Quality Score of 68, which is Strong.

The Quality Grade Winner: The Toro Company

As you can clearly see from the Quality Grade breakdown above, The Toro Company has a better overall quality grade than Deere & Company. For investors who are looking for companies with higher quality than others in the same industry, The Toro Company could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

The Toro Company and Deere & Company’s Momentum Grades

Company Ticker Momentum
The Toro Company TTC C
Deere & Company DE B

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

The Toro Company has a Momentum Score of 60, which is Average. Deere & Company has a Momentum Score of 77, which is Strong.

The Momentum Grade Winner: Deere & Company

As you can clearly see from the Momentum Grade breakdown above, Deere & Company is considered to have stronger momentum compared to The Toro Company. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Deere & Company could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other The Toro Company and Deere & Company Grades

In addition to Momentum, Quality and Growth, A+ Investor also provides grades for Value and Estimate Revisions.

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Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether The Toro Company and Deere & Company pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, The Toro Company or Deere & Company Stock?

Overall, The Toro Company stock has a Growth Score of 95, Momentum Score of 60 and Quality Score of 98.

Deere & Company stock has a Growth Score of 56, Momentum Score of 77 and Quality Score of 68.

Comparing The Toro Company and Deere & Company’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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