Head to Head Review: WABCO (WBC) versus Its Rivals

WABCO (NYSE: WBC) is one of 15 publicly-traded companies in the “Heavy Machinery & Vehicles” industry, but how does it contrast to its rivals? We will compare WABCO to related businesses based on the strength of its risk, dividends, earnings, valuation, institutional ownership, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for WABCO and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WABCO 0 4 11 0 2.73
WABCO Competitors 171 885 965 17 2.41

WABCO currently has a consensus target price of $159.36, indicating a potential upside of 11.68%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 6.33%. Given WABCO’s stronger consensus rating and higher probable upside, research analysts clearly believe WABCO is more favorable than its rivals.

Earnings & Valuation

This table compares WABCO and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
WABCO $2.81 billion $223.00 million 25.76
WABCO Competitors $6.06 billion $48.37 million 117.21

WABCO’s rivals have higher revenue, but lower earnings than WABCO. WABCO 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.

Risk and Volatility

WABCO has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, WABCO’s rivals have a beta of 1.43, meaning that their average stock price is 43% more volatile than the S&P 500.

Insider and Institutional Ownership

95.3% of WABCO shares are held by institutional investors. Comparatively, 82.2% of shares of all “Heavy Machinery & Vehicles” companies are held by institutional investors. 0.8% of WABCO shares are held by company insiders. Comparatively, 8.9% 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 company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
WABCO 9.75% 38.93% 10.53%
WABCO Competitors 4.06% 13.41% 3.96%

Summary

WABCO beats its rivals on 9 of the 13 factors compared.

WABCO Company Profile

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.

Receive News & Ratings for WABCO Holdings Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for WABCO Holdings Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply