Timken Company (The) (NYSE: TKR) is one of 55 public companies in the “Industrial Machinery & Equipment” industry, but how does it compare to its peers? We will compare Timken Company (The) to similar businesses based on the strength of its institutional ownership, analyst recommendations, risk, valuation, dividends, profitability and earnings.

Valuation and Earnings

This table compares Timken Company (The) and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Timken Company (The) $2.67 billion $152.60 million 18.63
Timken Company (The) Competitors $3.33 billion $239.54 million 488.72

Timken Company (The)’s peers have higher revenue and earnings than Timken Company (The). 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.

Dividends

Timken Company (The) pays an annual dividend of $1.08 per share and has a dividend yield of 2.3%. Timken Company (The) pays out 43.0% 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 36.2% of their earnings in the form of a dividend. Timken Company (The) has increased its dividend for 3 consecutive years.

Institutional & Insider Ownership

77.5% of Timken Company (The) shares are owned by institutional investors. Comparatively, 79.4% 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, 5.5% of shares of all “Industrial Machinery & Equipment” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

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) 6.88% 13.75% 6.25%
Timken Company (The) Competitors 2.62% -40.41% 4.63%

Risk & Volatility

Timken Company (The) has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Timken Company (The)’s peers have a beta of 1.25, suggesting that their average share price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings 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 1 0 2.25
Timken Company (The) Competitors 289 1673 1812 19 2.41

Timken Company (The) presently has a consensus target price of $48.50, indicating a potential upside of 3.74%. As a group, “Industrial Machinery & Equipment” companies have a potential upside of 3.80%. 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.

Summary

Timken Company (The) peers beat Timken Company (The) on 9 of the 15 factors compared.

Timken Company (The) Company Profile

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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