Timken Company (The) (NYSE: TKR) is one of 57 publicly-traded companies in the “Industrial Machinery & Equipment” industry, but how does it compare to its competitors? We will compare Timken Company (The) to related companies based on the strength of its valuation, institutional ownership, earnings, risk, dividends, profitability and analyst recommendations.

Valuation and Earnings

This table compares Timken Company (The) and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Timken Company (The) $2.77 billion $385.30 million 24.19
Timken Company (The) Competitors $2.20 billion $345.93 million 24.56

Timken Company (The) has higher revenue and earnings than its competitors. Timken Company (The) is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Timken Company (The) pays an annual dividend of $1.08 per share and has a dividend yield of 2.1%. Timken Company (The) pays out 51.7% of its earnings in the form of a dividend. As a group, “Industrial Machinery & Equipment” companies pay a dividend yield of 1.5% and pay out 36.4% of their earnings in the form of a dividend. Timken Company (The) has raised its dividend for 3 consecutive years.

Profitability

This table compares Timken Company (The) and its competitors’ 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%
Timken Company (The) Competitors 2.98% 6.61% 4.74%

Volatility & Risk

Timken Company (The) has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Timken Company (The)’s competitors have a beta of 1.26, suggesting that their average stock price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Timken Company (The) and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Timken Company (The) 0 3 2 0 2.40
Timken Company (The) Competitors 290 1657 1763 19 2.41

Timken Company (The) currently has a consensus price target of $45.20, indicating a potential downside of 10.58%. As a group, “Industrial Machinery & Equipment” companies have a potential upside of 0.29%. Given Timken Company (The)’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Timken Company (The) has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

79.4% of Timken Company (The) shares are owned by institutional investors. Comparatively, 78.7% of shares of all “Industrial Machinery & Equipment” companies are owned by institutional investors. 11.1% of Timken Company (The) shares are owned by company insiders. Comparatively, 5.6% of shares of all “Industrial Machinery & Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Timken Company (The) beats its competitors on 9 of the 15 factors compared.

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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