Timken (NYSE:TKR) vs. Location Based Technologies (OTCMKTS:LBAS) Critical Review

Timken (NYSE:TKR) and Location Based Technologies (OTCMKTS:LBAS) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Earnings and Valuation

This table compares Timken and Location Based Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Timken	$4.57 billion	1.31	$352.70 million	$4.23	20.34
Location Based Technologies	N/A	N/A	N/A	N/A	N/A

Timken has higher revenue and earnings than Location Based Technologies.

Institutional and Insider Ownership

89.1% of Timken shares are owned by institutional investors. 8.7% of Timken shares are owned by insiders. Comparatively, 24.1% of Location Based Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Timken and Location Based Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Timken	6.54%	11.88%	5.65%
Location Based Technologies	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Timken and Location Based Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Timken	0	7	4	0	2.36
Location Based Technologies	0	0	0	0	0.00

Timken presently has a consensus target price of $83.20, suggesting a potential downside of 3.28%. Given Timken’s stronger consensus rating and higher possible upside, research analysts clearly believe Timken is more favorable than Location Based Technologies.

Risk & Volatility

Timken has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Location Based Technologies has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Summary

Timken beats Location Based Technologies on 8 of the 10 factors compared between the two stocks.

About Timken

The Timken Company designs, manufactures, and sells engineered bearings and industrial motion products, and related services in the United States and internationally. The company's Engineered Bearings segment provides various bearing products, including tapered, spherical, and cylindrical roller bearings; plain bearings, metal-polymer bearings, and rod end bearings; radial, angular, and precision ball bearings; thrust and specialty ball bearings; journal bearings; and housed or mounted bearings. This segment serves wind energy, agriculture, construction, food and beverage, metals and mining, automotive and truck, aerospace, rail, and other industries under the Timken, GGB, and Fafnir brands. Its Industrial Motion segment offers a portfolio of engineered products comprising industrial drives, automatic lubrication systems, linear motion products and systems, chains, belts, seals, couplings, filtration systems, and industrial clutches and brakes. It also provides industrial drivetrain and bearing repairing services. This segment serves a range of industries, such as solar energy, automation, construction, agriculture and turf, passenger rail, marine, aerospace, packaging and logistics, medical, and others under the Philadelphia Gear, Cone Drive, Rollon, Nadella, Groeneveld, BEKA, Diamond, Drives, Timken Belts, Spinea, Des-Case, Lagersmit, Lovejoy, and PT Tech brands. The Timken Company was founded in 1899 and is headquartered in North Canton, Ohio.

About Location Based Technologies

Location Based Technologies, Inc. designs, develops, and sells commercial and consumer wearable global positioning system (GPS) tracking solutions based on worldwide GSM network. It offers consumer products under the PocketFinder brand, including PocketFinder, PocketFinder luggage, PocketFinder Pet, and PocketFinder Vehicle that displays information to users regarding device location, longitude, latitude, altitude, heading or direction, speed, and 60 days of location history; and set alerts that will trigger an email, text, or push notification to notify them when their device exceeds a pre-determined parameter, such as speed, battery life, or entry/exit of a geo-zone. The company's PocketFinder Personal/Pet or luggage devices include small devices that are ideal for tracking or locating any mobile asset, person, pet, or valuable item; and PocketFinder Vehicle tracker is to be hardwired to any powered asset, such as vehicle, watercraft, or mobile generator to locate and track a mobile assets. It also provides commercial products under the LBT brand, including LBT-886 and LBT Vehicle Tracker. The company's LBT-886 comprises location device that enables a user to locate and track any person or mobile asset; and LBT Vehicle Tracker provides tracking features with capabilities, such as temperature, light and humidity monitoring, engine on/off monitoring, and starter interrupt engine capability or lone worker emergency alerts. It markets and sells its commercial products to small/midsize businesses, enterprise businesses, and governmental organizations that need to track vehicles, mobile equipment, portable assets, and workers through online retailers, as well as through its pocketfinder.com Website. The company was founded in 2006 and is based in Irvine, California.