Regal Beloit (NYSE:RBC) and Xiangtian USA Air Power (OTCMKTS:XTNY) are both mid-cap industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Dividends

Regal Beloit pays an annual dividend of $1.12 per share and has a dividend yield of 1.5%. Xiangtian USA Air Power does not pay a dividend. Regal Beloit pays out 23.0% of its earnings in the form of a dividend. Regal Beloit has raised its dividend for 8 consecutive years.

Risk & Volatility

Regal Beloit has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Xiangtian USA Air Power has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Regal Beloit and Xiangtian USA Air Power, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regal Beloit 0 2 5 0 2.71
Xiangtian USA Air Power 0 0 0 0 N/A

Regal Beloit currently has a consensus price target of $88.57, indicating a potential upside of 15.45%. Given Regal Beloit’s higher probable upside, equities research analysts plainly believe Regal Beloit is more favorable than Xiangtian USA Air Power.

Institutional & Insider Ownership

93.2% of Regal Beloit shares are held by institutional investors. 2.2% of Regal Beloit shares are held by insiders. Comparatively, 62.0% of Xiangtian USA Air Power shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Regal Beloit and Xiangtian USA Air Power’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regal Beloit 6.34% 10.73% 5.61%
Xiangtian USA Air Power -9.02% -44.87% -5.23%

Earnings & Valuation

This table compares Regal Beloit and Xiangtian USA Air Power’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Regal Beloit $3.36 billion 0.99 $213.00 million $4.87 15.75
Xiangtian USA Air Power $15.26 million 158.02 -$1.36 million N/A N/A

Regal Beloit has higher revenue and earnings than Xiangtian USA Air Power.

Summary

Regal Beloit beats Xiangtian USA Air Power on 11 of the 14 factors compared between the two stocks.

About Regal Beloit

Regal Beloit Corporation, together with its subsidiaries, designs, manufactures, and sells electric motors, electrical motion controls, and power generation and power transmission products worldwide. It operates through three segments: Commercial and Industrial Systems, Climate Solutions, and Power Transmission Solutions. The Commercial and Industrial Systems segment provides AC and DC motors, and controls; motors, electronic variable speed controls, and blowers; and starters, contactors, relays, variable frequency drives, and integrated solutions of components. This segment also offers precision stator and rotor kits; hazardous duty motors; and electric generators, automatic transfer switches, power generation and distribution switch gears, and components and system controls. It serves commercial heating, ventilation, and air conditioning (HVAC); pool and spa; standby and critical power; and oil and gas system markets. The Climate Solutions segment offers motors, electronic variable speed controls, and blowers, as well as capacitors, precision stators, and rotor sets for residential and light commercial HVAC, water heaters, and commercial refrigeration markets. The Power Transmission Solutions segment provides mounted and unmounted bearings; conveyor products; disc products, patented diaphragms, gear couplings, couplings and transmission elements, gears, grids, jaws, elastomers, and joints; mechanical power transmission drives, components, and bearings; and worm gearing, shaft mount reducer, helical concentric and right angle, bevel and miter gearing, center pivot gearing, and open gearing products. It serves beverage, bulk handling, metals, special machinery, energy, and aerospace and general industrial markets. The company sells its products directly, as well as through independent sales representatives and distributors. Regal Beloit Corporation was founded in 1955 and is based in Beloit, Wisconsin.

About Xiangtian USA Air Power

Xiangtian (USA) Air Power Co., Ltd. engages in the research, development, production, and marketing of compressed air energy storage power generation systems primarily in China. The company utilizes a proprietary compressed air energy storage power generation technology that can store energy for other alternative energy sources, such as solar, wind, geothermal, and tidal as raw power to regenerate electricity without the use of fossil fuels or other chemical methods. Its principal product is a system that combines air compression power generation systems with a photovoltaic (PV) installation for industrial users, such as factories and power plants. The company also provides PV systems without the air compression generation technology. Xiangtian (USA) Air Power Co., Ltd. offers its products through third-party distributors and sales agencies. The company was formerly known as Goa Sweet Tours, Ltd. and changed its name to Xiangtian (USA) Air Power Co., Ltd. in May 2012. Xiangtian (USA) Air Power Co., Ltd. was founded in 2008 and is based in Sanhe, China.

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