Timken Company (The) (NYSE: TKR) is one of 60 public companies in the “Industrial Machinery & Equipment” industry, but how does it compare to its competitors? We will compare Timken Company (The) to related businesses based on the strength of its analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Valuation and Earnings

This table compares Timken Company (The) and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Timken Company (The) $2.67 billion $152.60 million 18.59
Timken Company (The) Competitors $3.26 billion $235.13 million 445.39

Timken Company (The)’s competitors have higher revenue and earnings than Timken Company (The). Timken Company (The) is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Timken Company (The) and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Timken Company (The) 6.88% 13.75% 6.25%
Timken Company (The) Competitors 3.17% -36.27% 4.82%

Risk and Volatility

Timken Company (The) has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Timken Company (The)’s competitors have a beta of 1.23, meaning that their average share price is 23% more volatile than the S&P 500.

Dividends

Timken Company (The) pays an annual dividend of $1.08 per share and has a dividend yield of 2.3%. Timken Company (The) pays out 43.0% of its earnings in the form of a dividend. As a group, “Industrial Machinery & Equipment” companies pay a dividend yield of 1.5% and pay out 35.6% of their earnings in the form of a dividend. Timken Company (The) has raised its dividend for 3 consecutive years.

Analyst Recommendations

This is a summary of current ratings for Timken Company (The) and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Timken Company (The) 0 3 1 0 2.25
Timken Company (The) Competitors 300 1768 1882 20 2.41

Timken Company (The) currently has a consensus price target of $48.50, indicating a potential upside of 3.97%. As a group, “Industrial Machinery & Equipment” companies have a potential upside of 3.56%. Given Timken Company (The)’s higher probable upside, research analysts clearly believe Timken Company (The) is more favorable than its competitors.

Insider and Institutional Ownership

77.5% of Timken Company (The) shares are owned by institutional investors. Comparatively, 79.7% of shares of all “Industrial Machinery & Equipment” companies are owned by institutional investors. 11.1% of Timken Company (The) shares are owned by company insiders. Comparatively, 5.6% of shares of all “Industrial Machinery & Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Timken Company (The) competitors beat Timken Company (The) on 8 of the 15 factors compared.

Timken Company (The) Company Profile

The Timken Company engineers, manufactures and markets bearings, transmissions, gearboxes, belts, chain, couplings and related products and offers a spectrum of power system rebuild and repair services across the world. The Company operates through two segments: Mobile Industries and Process Industries. Its Mobile Industries segment offers a portfolio of bearings, seals, lubrication devices and systems, as well as power transmission components, engineered chain, augers, belts and related products and maintenance services to original equipment manufacturers (OEMs) and end users of off-highway equipment for the agricultural, construction, mining, outdoor power equipment and powersports markets; on-highway vehicles, including passenger cars, light trucks and medium- and heavy-duty trucks; rail cars, and locomotives. Its Process Industries segment supplies industrial bearings and assemblies, power transmission components, and related products and services to OEMs and end users.

Receive News & Stock Ratings for Timken Company (The) Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Timken Company (The) and related stocks with our FREE daily email newsletter.