Timken Company (The) (NYSE: TKR) is one of 51 public companies in the “Industrial Machinery & Equipment” industry, but how does it compare to its rivals? We will compare Timken Company (The) to similar businesses based on the strength of its earnings, dividends, analyst recommendations, institutional ownership, profitability, valuation and risk.

Dividends

Timken Company (The) pays an annual dividend of $1.08 per share and has a dividend yield of 2.4%. Timken Company (The) pays out 43.0% of its earnings in the form of a dividend. As a group, “Industrial Machinery & Equipment” companies pay a dividend yield of 1.5% and pay out 36.3% of their earnings in the form of a dividend. Timken Company (The) has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Timken Company (The) and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Timken Company (The) 0 3 1 0 2.25
Timken Company (The) Competitors 295 1708 1829 19 2.41

Timken Company (The) currently has a consensus price target of $48.50, suggesting a potential upside of 8.14%. As a group, “Industrial Machinery & Equipment” companies have a potential upside of 4.30%. Given Timken Company (The)’s higher probable upside, equities analysts clearly believe Timken Company (The) is more favorable than its rivals.

Risk and Volatility

Timken Company (The) has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Timken Company (The)’s rivals have a beta of 1.24, meaning that their average stock price is 24% more volatile than the S&P 500.

Earnings and Valuation

This table compares Timken Company (The) and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Timken Company (The) $2.67 billion $152.60 million 17.87
Timken Company (The) Competitors $3.33 billion $239.54 million 498.85

Timken Company (The)’s rivals have higher revenue and earnings than Timken Company (The). Timken Company (The) 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.

Profitability

This table compares Timken Company (The) and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Timken Company (The) 6.88% 13.75% 6.25%
Timken Company (The) Competitors 4.01% -45.77% 5.18%

Insider and Institutional Ownership

77.5% of Timken Company (The) shares are held by institutional investors. Comparatively, 80.2% of shares of all “Industrial Machinery & Equipment” companies are held by institutional investors. 11.1% of Timken Company (The) shares are held by insiders. Comparatively, 5.3% of shares of all “Industrial Machinery & Equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Timken Company (The) rivals beat Timken Company (The) on 8 of the 15 factors compared.

Timken Company (The) Company Profile

The Timken Company engineers, manufactures and markets bearings, transmissions, gearboxes, belts, chain, couplings and related products and offers a spectrum of power system rebuild and repair services across the world. The Company operates through two segments: Mobile Industries and Process Industries. Its Mobile Industries segment offers a portfolio of bearings, seals, lubrication devices and systems, as well as power transmission components, engineered chain, augers, belts and related products and maintenance services to original equipment manufacturers (OEMs) and end users of off-highway equipment for the agricultural, construction, mining, outdoor power equipment and powersports markets; on-highway vehicles, including passenger cars, light trucks and medium- and heavy-duty trucks; rail cars, and locomotives. Its Process Industries segment supplies industrial bearings and assemblies, power transmission components, and related products and services to OEMs and end users.

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