Head to Head Review: GEA Group (GEAGF) versus Its Rivals

GEA Group (OTCMKTS:GEAGF) is one of 436 public companies in the “Machinery” industry, but how does it contrast to its rivals? We will compare GEA Group to similar businesses based on the strength of its risk, institutional ownership, valuation, analyst recommendations, earnings, profitability and dividends.

Analyst Recommendations

This is a breakdown of current ratings and target prices for GEA Group and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GEA Group	0	2	0	0	2.00
GEA Group Competitors	4214	14729	18257	809	2.41

As a group, “Machinery” companies have a potential upside of 28.91%. Given GEA Group’s rivals stronger consensus rating and higher possible upside, analysts plainly believe GEA Group has less favorable growth aspects than its rivals.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
GEA Group	$6.22 billion	$468.41 million	30.54
GEA Group Competitors	$4.72 billion	$361.11 million	6.53

GEA Group has higher revenue and earnings than its rivals. GEA Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

51.8% of shares of all “Machinery” companies are owned by institutional investors. 14.1% of shares of all “Machinery” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

GEA Group has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, GEA Group’s rivals have a beta of 5.12, suggesting that their average share price is 412% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GEA Group	7.70%	18.21%	7.52%
GEA Group Competitors	-1,035.51%	-36.25%	-0.27%

Summary

GEA Group rivals beat GEA Group on 7 of the 13 factors compared.

GEA Group Company Profile

GEA Group AG is a German engineering company that develops and supplies equipment, systems and services for industries including food and beverages, pharmaceuticals, chemicals and dairy processing. Its technologies support the production, processing and packaging of products, as well as related cleaning and utility processes. The company’s offerings include process equipment, pumps, valves, separators, heat exchangers, filling and packaging systems, and integrated production solutions. GEA also provides installation, maintenance, modernization and other services to help customers operate and maintain their facilities.