Financial Comparison: RBC Bearings (ROLL) versus NN (NASDAQ:NNBR)
NN (NASDAQ: NNBR) and RBC Bearings (NASDAQ:ROLL) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitabiliy, valuation, risk, institutional ownership and dividends.
Volatility & Risk
NN has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, RBC Bearings has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.
NN pays an annual dividend of $0.28 per share and has a dividend yield of 1.0%. RBC Bearings does not pay a dividend. NN pays out 45.9% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares NN and RBC Bearings’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NN||$847.58 million||0.95||$138.31 million||$0.61||47.87|
|RBC Bearings||$615.39 million||4.03||$148.92 million||$2.97||35.15|
RBC Bearings has higher revenue, but lower earnings than NN. RBC Bearings is trading at a lower price-to-earnings ratio than NN, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for NN and RBC Bearings, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NN presently has a consensus price target of $33.50, indicating a potential upside of 14.73%. RBC Bearings has a consensus price target of $73.00, indicating a potential downside of 30.08%. Given NN’s stronger consensus rating and higher probable upside, equities analysts clearly believe NN is more favorable than RBC Bearings.
This table compares NN and RBC Bearings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
95.9% of NN shares are held by institutional investors. Comparatively, 99.4% of RBC Bearings shares are held by institutional investors. 2.8% of NN shares are held by company insiders. Comparatively, 4.4% of RBC Bearings shares are held 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.
RBC Bearings beats NN on 10 of the 16 factors compared between the two stocks.
NN, Inc. is a diversified industrial company and a manufacturer of high precision bearing components, industrial plastic products and precision metal components to a range of markets on a global basis. The Company operates through three segments: the Precision Bearing Components Group, the Precision Engineered Products Group and the Autocam Precision Components Group. Within its Precision Bearing Components Group, it manufactures and supplies high precision bearing components, consisting of balls, cylindrical rollers, tapered rollers, spherical rollers and metal retainers, for bearing and constant velocity (CV)-joint. Within its Precision Engineered Products Group, it designs and manufactures a range of high-precision metal and plastic components, assemblies and finished devices. Within its Autocam Precision Components Group, the Company manufactures highly engineered, difficult-to-manufacture precision metal components and subassemblies.
About RBC Bearings
RBC Bearings Incorporated is an international manufacturer and marketer of engineered precision bearings and products, which are integral to the manufacture and operation of machines, aircraft and mechanical systems. The Company operates through four segments: Plain Bearings; Roller Bearings; Ball Bearings, and Engineered Products. The Company has over 40 facilities of which over 30 are manufacturing facilities in approximately five countries. The Company classifies its customers into two categories: industrial and aerospace. The Company manufactures bearings and engineered products for a range of diversified industrial markets, including construction and mining, oil and natural resource extraction, heavy truck, marine, rail and train, packaging, semiconductor machinery and the general industrial markets. The Company supplies bearings and engineered products for use in commercial, private and military aircraft and aircraft engines, guided weaponry, and vision and optical systems.
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