Wabco Holdings (NYSE: WBC) is one of 14 public companies in the “Heavy Machinery & Vehicles” industry, but how does it weigh in compared to its peers? We will compare Wabco Holdings to similar companies based on the strength of its risk, earnings, valuation, analyst recommendations, institutional ownership, dividends and profitability.

Profitability

This table compares Wabco Holdings and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wabco Holdings 9.75% 38.93% 10.53%
Wabco Holdings Competitors 4.35% 14.50% 4.29%

Risk & Volatility

Wabco Holdings has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Wabco Holdings’ peers have a beta of 1.45, indicating that their average stock price is 45% more volatile than the S&P 500.

Earnings and Valuation

This table compares Wabco Holdings and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Wabco Holdings $2.81 billion $223.00 million 26.16
Wabco Holdings Competitors $6.55 billion $52.50 million 166.95

Wabco Holdings’ peers have higher revenue, but lower earnings than Wabco Holdings. Wabco Holdings is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

96.8% of Wabco Holdings shares are held by institutional investors. Comparatively, 81.2% of shares of all “Heavy Machinery & Vehicles” companies are held by institutional investors. 0.8% of Wabco Holdings 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Wabco Holdings and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wabco Holdings 0 4 11 0 2.73
Wabco Holdings Competitors 170 874 945 17 2.40

Wabco Holdings currently has a consensus price target of $159.36, indicating a potential upside of 10.18%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 7.86%. Given Wabco Holdings’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Wabco Holdings is more favorable than its peers.

Summary

Wabco Holdings beats its peers on 9 of the 13 factors compared.

About Wabco Holdings

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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