Wabco Holdings (NYSE: WBC) is one of 15 public companies in the “Heavy Machinery & Vehicles” industry, but how does it contrast to its rivals? We will compare Wabco Holdings to related companies based on the strength of its earnings, dividends, analyst recommendations, institutional ownership, profitability, valuation and risk.

Earnings and Valuation

This table compares Wabco Holdings and its rivals gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Wabco Holdings $2.81 billion $223.00 million 25.91
Wabco Holdings Competitors $6.06 billion $48.37 million 165.12

Wabco Holdings’ rivals have higher revenue, but lower earnings than Wabco Holdings. Wabco Holdings is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

96.8% of Wabco Holdings shares are owned by institutional investors. Comparatively, 81.2% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 0.8% of Wabco Holdings shares are owned by company insiders. Comparatively, 8.3% of shares of all “Heavy Machinery & Vehicles” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Wabco Holdings and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wabco Holdings 0 4 11 0 2.73
Wabco Holdings Competitors 170 875 950 17 2.40

Wabco Holdings currently has a consensus target price of $159.36, suggesting a potential upside of 11.01%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 7.66%. Given Wabco Holdings’ stronger consensus rating and higher probable upside, equities analysts plainly believe Wabco Holdings is more favorable than its rivals.

Risk and Volatility

Wabco Holdings has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500. Comparatively, Wabco Holdings’ rivals have a beta of 1.45, meaning that their average share price is 45% more volatile than the S&P 500.

Profitability

This table compares Wabco Holdings and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wabco Holdings 9.75% 38.93% 10.53%
Wabco Holdings Competitors 4.12% 13.59% 4.02%

Summary

Wabco Holdings beats its rivals on 9 of the 13 factors compared.

About Wabco Holdings

WABCO Holdings Inc. is a supplier of electronic, mechanical, electro-mechanical and aerodynamic products for various manufacturers of commercial trucks, buses and trailers, as well as passenger cars. The Company engineers, develops, manufactures and sells braking, stability, suspension and transmission automation and air management systems primarily for commercial vehicles. Its products are pneumatic anti-lock braking systems, electronic braking systems, electronic stability control systems, brake controls, automated manual transmission systems, air disc brakes, and a range of conventional mechanical products, such as actuators, air compressors and air control valves for medium- and heavy-duty trucks, buses and trailers. The Company’s products also include air compressor and air processing/air management system; electronic and conventional air suspension systems; transmission automation; roll stability support; advanced driver assistance systems, and fleet management solutions.

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