NN (NNBR) & Its Peers Critical Analysis

NN (NASDAQ:NNBR) is one of 436 public companies in the “Machinery” industry, but how does it weigh in compared to its rivals? We will compare NN to related companies based on the strength of its earnings, valuation, profitability, risk, dividends, institutional ownership and analyst recommendations.

Risk and Volatility

NN has a beta of 2.74, meaning that its stock price is 174% more volatile than the S&P 500. Comparatively, NN’s rivals have a beta of 5.12, meaning that their average stock price is 412% more volatile than the S&P 500.

Insider & Institutional Ownership

53.9% of NN shares are owned by institutional investors. Comparatively, 51.8% of shares of all “Machinery” companies are owned by institutional investors. 5.6% of NN shares are owned by insiders. Comparatively, 14.2% of shares of all “Machinery” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NN	-5.43%	25.25%	2.60%
NN Competitors	-1,044.43%	-15.08%	0.57%

Valuation & Earnings

This table compares NN and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NN	$422.21 million	-$34.00 million	-3.20
NN Competitors	$4.61 billion	$364.05 million	5.03

NN’s rivals have higher revenue and earnings than NN. NN 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.

Analyst Ratings

This is a summary of current ratings for NN and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NN	1	1	2	1	2.60
NN Competitors	4206	14707	18216	808	2.41

NN presently has a consensus target price of $5.67, indicating a potential upside of 106.06%. As a group, “Machinery” companies have a potential upside of 35.32%. Given NN’s stronger consensus rating and higher probable upside, research analysts plainly believe NN is more favorable than its rivals.

Summary

NN beats its rivals on 8 of the 13 factors compared.

NN Company Profile

NN, Inc., together with its subsidiaries, designs, manufactures, and sells high-precision components and assemblies for various end markets in the United States and internationally. It operates through two segments, Mobile Solutions and Power Solutions. The Mobile Solutions segment manufactures and sells system critical components for automotive, general industrial, and medical end markets for use in power steering, braking, transmissions, gasoline fuel system, diesel injection, and diesel emissions treatment applications, as well as in heating, ventilation, and air conditioning. The Power Solutions segment designs, manufactures, and sells a range of high-precision metal and plastic components, assemblies, and finished devices used in various applications, such as power control and transportation electrification. Its products include electrical contacts, connectors, contact assemblies, and precision stampings for the electrical, general industrial, automotive, aerospace and defense, and medical end markets. This segment also produces various tools and instruments for the orthopaedics and medical/surgical end markets. NN, Inc. was founded in 1980 and is headquartered in Charlotte, North Carolina.