Head to Head Analysis: MTS Systems Corporation (MTSC) versus Regal Beloit Corporation (RBC)
MTS Systems Corporation (NASDAQ: MTSC) and Regal Beloit Corporation (NYSE:RBC) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.
Insider & Institutional Ownership
92.2% of Regal Beloit Corporation shares are owned by institutional investors. 1.8% of MTS Systems Corporation shares are owned by company insiders. Comparatively, 2.2% of Regal Beloit Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
MTS Systems Corporation has a beta of 1.28, indicating that its share price is 28% 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.
This is a breakdown of current ratings and recommmendations for MTS Systems Corporation and Regal Beloit Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MTS Systems Corporation||0||1||1||0||2.50|
|Regal Beloit Corporation||0||5||4||0||2.44|
MTS Systems Corporation currently has a consensus target price of $61.00, suggesting a potential upside of 15.31%. Regal Beloit Corporation has a consensus target price of $86.33, suggesting a potential upside of 9.49%. Given MTS Systems Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe MTS Systems Corporation is more favorable than Regal Beloit Corporation.
MTS Systems Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 2.3%. Regal Beloit Corporation pays an annual dividend of $1.04 per share and has a dividend yield of 1.3%. MTS Systems Corporation pays out 91.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Regal Beloit Corporation pays out 23.0% of its earnings in the form of a dividend. Regal Beloit Corporation has increased its dividend for 7 consecutive years.
Earnings & Valuation
This table compares MTS Systems Corporation 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|
|MTS Systems Corporation||$801.32 million||1.12||$113.92 million||$1.31||40.38|
|Regal Beloit Corporation||$3.25 billion||1.08||$469.10 million||$4.53||17.41|
Regal Beloit Corporation has higher revenue and earnings than MTS Systems Corporation. Regal Beloit Corporation is trading at a lower price-to-earnings ratio than MTS Systems Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares MTS Systems Corporation and Regal Beloit Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MTS Systems Corporation||3.13%||12.49%||4.31%|
|Regal Beloit Corporation||6.29%||9.88%||4.79%|
Regal Beloit Corporation beats MTS Systems Corporation on 11 of the 17 factors compared between the two stocks.
About MTS Systems Corporation
MTS Systems Corporation is a supplier of test systems and position sensors. The Company operates through two segments: Test and Sensors. The Test segment provides testing solutions, including hardware, software and services to ground vehicles, materials and structures markets. The Sensors segment provides position sensors for a range of industrial and mobile hydraulic applications. The Sensors segment products are used by industrial machinery and mobile equipment manufacturers to automate the operation of their products for safety and end-user productivity. The Sensors segment manufactures products utilizing magnetostriction technology. Its technology, Temposonics, offers non-contact position sensing. Its Temposonics sensors provide position feedback for motion control systems. It also provides various service offerings, including calibration, maintenance, training and consulting. The Company has its manufacturing facilities in North America, Europe and Asia.
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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