Contrasting Kinder Morgan Management (KMR) & Regal Beloit (RBC)

Kinder Morgan Management (NYSE: KMR) and Regal Beloit (NYSE:RBC) are both mid-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Risk & Volatility

Kinder Morgan Management has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Regal Beloit has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.

Insider and Institutional Ownership

93.9% of Regal Beloit shares are owned by institutional investors. 2.2% of Regal Beloit shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Regal Beloit pays an annual dividend of $1.04 per share and has a dividend yield of 1.3%. Kinder Morgan Management does not pay a dividend. Regal Beloit pays out 22.6% of its earnings in the form of a dividend. Kinder Morgan Management has increased its dividend for 8 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Kinder Morgan Management and Regal Beloit, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kinder Morgan Management 0 0 0 0 N/A
Regal Beloit 0 5 5 0 2.50

Regal Beloit has a consensus target price of $86.63, indicating a potential upside of 8.76%. Given Regal Beloit’s higher possible upside, analysts plainly believe Regal Beloit is more favorable than Kinder Morgan Management.

Profitability

This table compares Kinder Morgan Management and Regal Beloit’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kinder Morgan Management N/A N/A N/A
Regal Beloit 6.28% 9.76% 4.84%

Earnings & Valuation

This table compares Kinder Morgan Management and Regal Beloit’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kinder Morgan Management N/A N/A N/A $1.85 56.60
Regal Beloit $3.22 billion 1.09 $203.40 million $4.60 17.32

Regal Beloit has higher revenue and earnings than Kinder Morgan Management. Regal Beloit is trading at a lower price-to-earnings ratio than Kinder Morgan Management, indicating that it is currently the more affordable of the two stocks.

Summary

Regal Beloit beats Kinder Morgan Management on 11 of the 14 factors compared between the two stocks.

About Kinder Morgan Management

Kinder Morgan Management, LLC is a limited partner in Kinder Morgan Energy Partners, L.P (KMP), and manages and controls its business and affairs pursuant to a delegation of control agreement. Kinder Morgan G.P., Inc., of which Kinder Morgan, Inc. indirectly owns all of the outstanding common equity, is the general partner of Kinder Morgan Energy Partners, L.P. (KMP). Kinder Morgan G.P., Inc., pursuant to a delegation of control agreement among the Company, Kinder Morgan G.P., Inc. and KMP, has delegated to the Company, to the fullest extent permitted under Delaware law and KMP’s limited partnership agreement, all of its rights and powers to manage and control the business and affairs of KMP, subject to the general partner’s right to approve specified actions.

About Regal Beloit

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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