Comparing AMTEK (AME) and Regal Beloit Corporation (RBC)
AMTEK (NYSE: AME) and Regal Beloit Corporation (NYSE:RBC) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Institutional & Insider Ownership
85.6% of AMTEK shares are held by institutional investors. Comparatively, 92.1% of Regal Beloit Corporation shares are held by institutional investors. 2.1% of AMTEK shares are held by company insiders. Comparatively, 2.2% of Regal Beloit Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares AMTEK and Regal Beloit Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|AMTEK||$3.99 billion||3.88||$1.04 billion||$2.28||29.46|
|Regal Beloit Corporation||$3.25 billion||1.08||$469.10 million||$4.53||17.36|
AMTEK has higher revenue and earnings than Regal Beloit Corporation. Regal Beloit Corporation is trading at a lower price-to-earnings ratio than AMTEK, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for AMTEK and Regal Beloit Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Regal Beloit Corporation||0||5||4||0||2.44|
AMTEK presently has a consensus target price of $65.80, indicating a potential downside of 2.03%. Regal Beloit Corporation has a consensus target price of $86.33, indicating a potential upside of 9.77%. Given Regal Beloit Corporation’s higher probable upside, analysts clearly believe Regal Beloit Corporation is more favorable than AMTEK.
Volatility & Risk
AMTEK has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Regal Beloit Corporation has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.
AMTEK pays an annual dividend of $0.36 per share and has a dividend yield of 0.5%. Regal Beloit Corporation pays an annual dividend of $1.04 per share and has a dividend yield of 1.3%. AMTEK pays out 15.8% of its earnings in the form of a dividend. Regal Beloit Corporation pays out 23.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Regal Beloit Corporation has increased its dividend for 7 consecutive years. Regal Beloit Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares AMTEK and Regal Beloit Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Regal Beloit Corporation||6.29%||9.88%||4.79%|
AMTEK beats Regal Beloit Corporation on 10 of the 17 factors compared between the two stocks.
AMETEK, Inc. is a manufacturer of electronic instruments and electromechanical devices with operations in North America, Europe, Asia and South America. The Company operates through two segments: Electronic Instruments (EIG) and Electromechanical (EMG). EIG designs and manufactures instruments for the process, power and industrial and aerospace markets. EIG provides process and analytical instruments for the oil, gas, petrochemical, pharmaceutical, semiconductor and automation markets. It makes monitoring and metering devices, industrial battery chargers and uninterruptible power supplies, programmable power equipment, electrical test equipment and gas turbine sensors. EMG is a differentiated supplier of precision motion control solutions, thermal management systems, specialty metals and electrical interconnects. Its end markets include medical, automation, petrochemical and other industrial markets. It operates a network of aviation maintenance, repair and overhaul (MRO) facilities.
About Regal Beloit Corporation
Regal Beloit Corporation is a manufacturer of electric motors, electrical motion controls, power generation and power transmission products. The Company operates through three segments: the Commercial and Industrial Systems segment, with its principal line of business in medium and large electric motors, power generation products, high-performance drives and controls and capacitors; the Climate Solutions segment, with its principal line of business in small motors, controls and air moving products, and the Power Transmission Solutions segment, with its principal line of business in power transmission gearing, hydraulic pump drives, open gearing and specialty mechanical products which control motion and torque. It sells its products directly to original equipment manufacturers (OEMs), distributors and end users. It operates distribution facilities in Plainfield, Indiana; McAllen, Texas; LaVergne, Tennessee, and Florence, Kentucky.
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