Head to Head Analysis: Hayward (NYSE:HAYW) & Timken (NYSE:TKR)

Timken (NYSE:TKR) and Hayward (NYSE:HAYW) are both mid-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Insider & Institutional Ownership

89.1% of Timken shares are held by institutional investors. 8.7% of Timken shares are held by insiders. Comparatively, 5.1% of Hayward shares are held 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Timken and Hayward, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Timken	0	8	4	0	2.33
Hayward	0	4	1	1	2.50

Timken presently has a consensus price target of $82.20, indicating a potential upside of 4.12%. Hayward has a consensus price target of $18.00, indicating a potential upside of 11.52%. Given Hayward’s stronger consensus rating and higher probable upside, analysts clearly believe Hayward is more favorable than Timken.

Valuation and Earnings

This table compares Timken and Hayward”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Timken	$4.54 billion	1.21	$352.70 million	$4.23	18.66
Hayward	$1.05 billion	3.33	$118.65 million	$0.62	26.03

Timken has higher revenue and earnings than Hayward. Timken is trading at a lower price-to-earnings ratio than Hayward, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Timken has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, Hayward has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Profitability

This table compares Timken and Hayward’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Timken	6.54%	11.88%	5.65%
Hayward	12.54%	11.24%	5.49%

Summary

Timken beats Hayward on 9 of the 15 factors compared between the two stocks.

About Timken

The Timken Company designs, manufactures, and sells engineered bearings and industrial motion products, and related services in the United States and internationally. The company's Engineered Bearings segment provides various bearing products, including tapered, spherical, and cylindrical roller bearings; plain bearings, metal-polymer bearings, and rod end bearings; radial, angular, and precision ball bearings; thrust and specialty ball bearings; journal bearings; and housed or mounted bearings. This segment serves wind energy, agriculture, construction, food and beverage, metals and mining, automotive and truck, aerospace, rail, and other industries under the Timken, GGB, and Fafnir brands. Its Industrial Motion segment offers a portfolio of engineered products comprising industrial drives, automatic lubrication systems, linear motion products and systems, chains, belts, seals, couplings, filtration systems, and industrial clutches and brakes. It also provides industrial drivetrain and bearing repairing services. This segment serves a range of industries, such as solar energy, automation, construction, agriculture and turf, passenger rail, marine, aerospace, packaging and logistics, medical, and others under the Philadelphia Gear, Cone Drive, Rollon, Nadella, Groeneveld, BEKA, Diamond, Drives, Timken Belts, Spinea, Des-Case, Lagersmit, Lovejoy, and PT Tech brands. The Timken Company was founded in 1899 and is headquartered in North Canton, Ohio.

About Hayward

Hayward Holdings, Inc. designs, manufactures, and markets a portfolio of pool equipment and associated automation systems in North America, Europe, and internationally. The company offers pool equipment, including pumps, filters, robotics, suction and pressure cleaners, gas heaters and heat pumps, water features and landscape lighting, water sanitizers, salt chlorine generators, safety equipment, and in-floor automated cleaning systems, as well as LED illumination solutions. It sells its products through specialty distributors, retailers, and buying groups. The company was founded in 1925 and is headquartered in Charlotte, North Carolina.