Federal Signal Corporation (NYSE: FSS) is one of 14 publicly-traded companies in the “Heavy Machinery & Vehicles” industry, but how does it compare to its peers? We will compare Federal Signal Corporation to related businesses based on the strength of its dividends, analyst recommendations, profitability, earnings, institutional ownership, risk and valuation.

Valuation & Earnings

This table compares Federal Signal Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Federal Signal Corporation $707.90 million $43.80 million 28.51
Federal Signal Corporation Competitors $6.06 billion $48.37 million 7.55

Federal Signal Corporation’s peers have higher revenue and earnings than Federal Signal Corporation. Federal Signal Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Federal Signal Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Federal Signal Corporation 5.30% 11.39% 5.64%
Federal Signal Corporation Competitors 4.12% 13.93% 4.02%

Risk & Volatility

Federal Signal Corporation has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Federal Signal Corporation’s peers have a beta of 1.44, indicating that their average share price is 44% more volatile than the S&P 500.

Dividends

Federal Signal Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. Federal Signal Corporation pays out 38.4% of its earnings in the form of a dividend. As a group, “Heavy Machinery & Vehicles” companies pay a dividend yield of 1.3% and pay out 35.8% of their earnings in the form of a dividend. Federal Signal Corporation has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of current ratings and target prices for Federal Signal Corporation and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federal Signal Corporation 0 0 2 0 3.00
Federal Signal Corporation Competitors 171 876 951 17 2.40

Federal Signal Corporation presently has a consensus price target of $20.00, indicating a potential downside of 3.89%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 6.94%. Given Federal Signal Corporation’s peers higher possible upside, analysts clearly believe Federal Signal Corporation has less favorable growth aspects than its peers.

Insider & Institutional Ownership

84.4% of Federal Signal Corporation shares are held by institutional investors. Comparatively, 81.8% of shares of all “Heavy Machinery & Vehicles” companies are held by institutional investors. 4.2% of Federal Signal Corporation 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, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Federal Signal Corporation peers beat Federal Signal Corporation on 8 of the 15 factors compared.

Federal Signal Corporation Company Profile

Federal Signal Corporation designs, manufactures and supplies a suite of products and integrated solutions for municipal, governmental, industrial and commercial customers. The Company’s segments include the Environmental Solutions Group and the Safety and Security Systems Group. Its Environmental Solutions Group manufactures and supplies a range of street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks and waterblasting equipment. The products are sold to both municipal and industrial customers under the Elgin, Vactor, Guzzler and Jetstream brand names. Safety and Security Systems is a manufacturer and supplier of systems and products that law enforcement, fire rescue, emergency medical services, campuses military facilities and industrial sites use to protect people and property. It offers systems for campus and community alerting, emergency vehicles, first responder interoperable communications and industrial communications, among others.

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