Analyzing Regal Beloit Corporation (RBC) and Kyocera Corporation (KYO)
Regal Beloit Corporation (NYSE: RBC) and Kyocera Corporation (NYSE:KYO) are both mid-cap industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.
Volatility and Risk
Regal Beloit Corporation has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. Comparatively, Kyocera Corporation has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500.
This is a summary of current recommendations for Regal Beloit Corporation and Kyocera Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Regal Beloit Corporation||0||5||5||0||2.50|
Regal Beloit Corporation presently has a consensus price target of $86.14, indicating a potential upside of 11.37%. Given Regal Beloit Corporation’s higher possible upside, research analysts clearly believe Regal Beloit Corporation is more favorable than Kyocera Corporation.
Valuation and Earnings
This table compares Regal Beloit Corporation and Kyocera Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Regal Beloit Corporation||$3.22 billion||1.06||$203.40 million||$4.60||16.82|
|Kyocera Corporation||$12.70 billion||2.01||$965.73 million||$3.19||21.82|
Kyocera Corporation has higher revenue and earnings than Regal Beloit Corporation. Regal Beloit Corporation is trading at a lower price-to-earnings ratio than Kyocera Corporation, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
92.2% of Regal Beloit Corporation shares are held by institutional investors. Comparatively, 0.6% of Kyocera Corporation shares are held by institutional investors. 2.2% of Regal Beloit Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Regal Beloit Corporation pays an annual dividend of $1.04 per share and has a dividend yield of 1.3%. Kyocera Corporation pays an annual dividend of $0.47 per share and has a dividend yield of 0.7%. Regal Beloit Corporation pays out 22.6% of its earnings in the form of a dividend. Kyocera Corporation pays out 14.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Regal Beloit Corporation has raised its dividend for 7 consecutive years. Regal Beloit Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Regal Beloit Corporation and Kyocera Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Regal Beloit Corporation||6.28%||9.76%||4.84%|
Regal Beloit Corporation beats Kyocera Corporation on 10 of the 17 factors compared between the two stocks.
Regal Beloit Corporation Company Profile
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.
Kyocera Corporation Company Profile
Kyocera Corporation is engaged in various fields, from fine ceramic components to electronic devices, equipment, services and networks. The Company operates through seven segments: Fine Ceramic Parts Group, Semiconductor Parts Group, Applied Ceramic Products Group, Electronic Device Group, Telecommunications Equipment Group, Information Equipment Group and Others. The Company’s products include components for semiconductor processing equipment and flat panel display manufacturing equipment, information and telecommunication components, general industrial machinery components, sapphire substrates, automotive components, solar energy products, cutting tools, medical and dental implants, jewelry and applied ceramic related products, page printers and multifunctional products. It also offers information systems and telecommunication services, engineering business, management consulting business, materials for semiconductors, chemical materials and realty development business.
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