Comparing Crane (CR) & Timken Company (The) (TKR)
Crane (NYSE: CR) and Timken Company (The) (NYSE:TKR) are both mid-cap multi-sector conglomerates companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.
This is a breakdown of recent recommendations and price targets for Crane and Timken Company (The), as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Timken Company (The)||0||3||2||0||2.40|
Crane presently has a consensus price target of $74.43, suggesting a potential downside of 10.98%. Timken Company (The) has a consensus price target of $45.20, suggesting a potential downside of 10.58%. Given Timken Company (The)’s higher probable upside, analysts clearly believe Timken Company (The) is more favorable than Crane.
Crane pays an annual dividend of $1.32 per share and has a dividend yield of 1.6%. Timken Company (The) pays an annual dividend of $1.08 per share and has a dividend yield of 2.1%. Crane pays out 60.8% of its earnings in the form of a dividend. Timken Company (The) pays out 51.7% 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. Crane has increased its dividend for 3 consecutive years. Timken Company (The) is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
69.4% of Crane shares are held by institutional investors. Comparatively, 79.4% of Timken Company (The) shares are held by institutional investors. 3.1% of Crane shares are held by company insiders. Comparatively, 11.1% of Timken Company (The) shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Crane and Timken Company (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Timken Company (The)||5.98%||12.73%||5.96%|
Earnings and Valuation
This table compares Crane and Timken Company (The)’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Crane||$2.75 billion||1.81||$482.00 million||$2.17||38.53|
|Timken Company (The)||$2.77 billion||1.42||$385.30 million||$2.09||24.19|
Crane has higher revenue, but lower earnings than Timken Company (The). Timken Company (The) is trading at a lower price-to-earnings ratio than Crane, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Crane has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Timken Company (The) has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.
Crane beats Timken Company (The) on 9 of the 17 factors compared between the two stocks.
Crane Co. (Crane) is a manufacturer of engineered industrial products. The Company operates through four segments, including Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics, and Engineered Materials. The Fluid Handling segment is a provider of engineered fluid handling equipment, including Process Valves and Related Products, Commercial Valves and Other Products. The Payment & Merchandising Technologies segment includes Crane Payment Innovations (CPI) and Merchandising Systems. The Aerospace & Electronics segment supplies various components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace and military aerospace, and defense markets. The Engineered Materials segment manufactures fiberglass-reinforced plastic (FRP) panels and coils, primarily for use in the manufacturing of recreational vehicles (RVs), truck bodies, truck trailers, with additional applications in commercial and industrial buildings.
About Timken Company (The)
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.
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