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 peers? We will compare Timken Company (The) to related businesses based on the strength of its dividends, risk, valuation, analyst recommendations, earnings, profitability and institutional ownership.

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Timken Company (The) $2.77 billion $385.30 million 24.67
Timken Company (The) Competitors $2.20 billion $345.93 million 24.82

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

Volatility & Risk

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

Profitability

This table compares Timken Company (The) and its peers’ 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% 6.63% 4.74%

Analyst Recommendations

This is a breakdown of current recommendations for Timken Company (The) and its peers, 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 1659 1764 19 2.41

Timken Company (The) presently has a consensus price target of $45.20, suggesting a potential downside of 12.32%. As a group, “Industrial Machinery & Equipment” companies have a potential upside of 0.06%. Given Timken Company (The)’s peers stronger consensus rating and higher possible upside, analysts plainly believe Timken Company (The) has less favorable growth aspects than its peers.

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.

Institutional and Insider 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 insiders. Comparatively, 5.6% of shares of all “Industrial Machinery & Equipment” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Timken Company (The) beats its peers 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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