Contrasting WABCO (WBC) and The Competition

WABCO (NYSE: WBC) is one of 15 publicly-traded companies in the “Heavy Machinery & Vehicles” industry, but how does it weigh in compared to its rivals? We will compare WABCO to related companies based on the strength of its earnings, dividends, analyst recommendations, valuation, institutional ownership, risk and profitability.

Analyst Ratings

This is a summary of current ratings and target prices for WABCO and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WABCO 0 4 11 0 2.73
WABCO Competitors 171 884 962 17 2.41

WABCO presently has a consensus price target of $159.36, indicating a potential upside of 8.02%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 6.95%. Given WABCO’s stronger consensus rating and higher probable upside, research analysts plainly believe WABCO is more favorable than its rivals.

Earnings & Valuation

This table compares WABCO and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
WABCO $2.81 billion $223.00 million 26.63
WABCO Competitors $6.06 billion $48.37 million 113.96

WABCO’s rivals have higher revenue, but lower earnings than WABCO. WABCO is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

WABCO has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, WABCO’s rivals have a beta of 1.44, suggesting that their average stock price is 44% more volatile than the S&P 500.

Institutional & Insider Ownership

98.3% of WABCO shares are held by institutional investors. Comparatively, 82.3% of shares of all “Heavy Machinery & Vehicles” companies are held by institutional investors. 0.8% of WABCO shares are held by company insiders. Comparatively, 8.3% of shares of all “Heavy Machinery & Vehicles” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares WABCO and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WABCO 9.75% 38.93% 10.53%
WABCO Competitors 4.06% 13.41% 3.96%

Summary

WABCO beats its rivals on 9 of the 13 factors compared.

About WABCO

WABCO Holdings Inc. is a supplier of electronic, mechanical, electro-mechanical and aerodynamic products for various manufacturers of commercial trucks, buses and trailers, as well as passenger cars. The Company engineers, develops, manufactures and sells braking, stability, suspension and transmission automation and air management systems primarily for commercial vehicles. Its products are pneumatic anti-lock braking systems, electronic braking systems, electronic stability control systems, brake controls, automated manual transmission systems, air disc brakes, and a range of conventional mechanical products, such as actuators, air compressors and air control valves for medium- and heavy-duty trucks, buses and trailers. The Company’s products also include air compressor and air processing/air management system; electronic and conventional air suspension systems; transmission automation; roll stability support; advanced driver assistance systems, and fleet management solutions.

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