WABCO (NYSE: WBC) is one of 15 publicly-traded companies in the “Heavy Machinery & Vehicles” industry, but how does it contrast to its rivals? We will compare WABCO to similar businesses based on the strength of its earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Risk & Volatility

WABCO has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500. Comparatively, WABCO’s rivals have a beta of 1.44, indicating that their average share price is 44% more volatile than the S&P 500.

Insider & Institutional Ownership

97.5% of WABCO shares are held by institutional investors. Comparatively, 81.8% of shares of all “Heavy Machinery & Vehicles” companies are held by institutional investors. 0.8% of WABCO shares are held by company insiders. Comparatively, 8.3% of shares of all “Heavy Machinery & Vehicles” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
WABCO 8.98% 31.19% 8.64%
WABCO Competitors 4.00% 12.86% 3.82%

Analyst Recommendations

This is a breakdown of recent ratings for WABCO and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WABCO 0 4 11 0 2.73
WABCO Competitors 171 876 957 17 2.41

WABCO currently has a consensus price target of $159.36, suggesting a potential upside of 9.31%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 8.00%. Given WABCO’s stronger consensus rating and higher probable upside, research analysts plainly believe WABCO is more favorable than its rivals.

Earnings & Valuation

This table compares WABCO and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
WABCO $2.81 billion $223.00 million 26.32
WABCO Competitors $6.06 billion $48.37 million 162.77

WABCO’s rivals have higher revenue, but lower earnings than WABCO. WABCO 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.

Summary

WABCO beats its rivals on 9 of the 13 factors compared.

About WABCO

WABCO Holdings Inc. is a supplier of electronic, mechanical, electro-mechanical and aerodynamic products for various manufacturers of commercial trucks, buses and trailers, as well as passenger cars. The Company engineers, develops, manufactures and sells braking, stability, suspension and transmission automation and air management systems primarily for commercial vehicles. Its products are pneumatic anti-lock braking systems, electronic braking systems, electronic stability control systems, brake controls, automated manual transmission systems, air disc brakes, and a range of conventional mechanical products, such as actuators, air compressors and air control valves for medium- and heavy-duty trucks, buses and trailers. The Company’s products also include air compressor and air processing/air management system; electronic and conventional air suspension systems; transmission automation; roll stability support; advanced driver assistance systems, and fleet management solutions.

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