Head-To-Head Survey: Regal Beloit Corporation (RBC) versus General Cable Corporation (NYSE:BGC)

General Cable Corporation (NYSE: BGC) and Regal Beloit Corporation (NYSE:RBC) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for General Cable Corporation and Regal Beloit Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Cable Corporation 0 2 0 0 2.00
Regal Beloit Corporation 0 6 3 0 2.33

Regal Beloit Corporation has a consensus target price of $81.40, indicating a potential upside of 7.03%. Given Regal Beloit Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Regal Beloit Corporation is more favorable than General Cable Corporation.

Valuation & Earnings

This table compares General Cable Corporation and Regal Beloit Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
General Cable Corporation $3.70 billion 0.22 $209.90 million ($3.57) -4.68
Regal Beloit Corporation $3.25 billion 1.04 $469.10 million $4.53 16.79

Regal Beloit Corporation has higher revenue, but lower earnings than General Cable Corporation. General Cable Corporation is trading at a lower price-to-earnings ratio than Regal Beloit Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares General Cable Corporation and Regal Beloit Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Cable Corporation -4.80% 13.47% 1.10%
Regal Beloit Corporation 6.29% 9.88% 4.79%

Dividends

General Cable Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 4.3%. Regal Beloit Corporation pays an annual dividend of $1.04 per share and has a dividend yield of 1.4%. General Cable Corporation pays out -20.2% of its earnings in the form of a dividend. Regal Beloit Corporation pays out 23.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Regal Beloit Corporation has increased its dividend for 7 consecutive years. General Cable Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

General Cable Corporation has a beta of 2.82, meaning that its stock price is 182% more volatile than the S&P 500. Comparatively, Regal Beloit Corporation has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500.

Institutional & Insider Ownership

99.4% of General Cable Corporation shares are owned by institutional investors. Comparatively, 93.3% of Regal Beloit Corporation shares are owned by institutional investors. 1.8% of General Cable Corporation shares are owned by insiders. Comparatively, 2.2% of Regal Beloit Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Regal Beloit Corporation beats General Cable Corporation on 10 of the 17 factors compared between the two stocks.

General Cable Corporation Company Profile

General Cable Corporation is engaged in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for use in the energy, industrial, construction, specialty and communications markets. The Company’s segments include North America, Europe, Latin America, and Africa/Asia Pacific. The Company produces and sells to a range of end markets, including markets for electric utility, electrical infrastructure, communications, construction and rod mill products. As of December 31, 2016, the North America segment included 17 manufacturing facilities across the region. The Europe segment consists of six manufacturing facilities across the region. The Latin America segment consists of six manufacturing facilities across the region. The Africa/Asia Pacific segment consists of four manufacturing facilities across the segment.

Regal Beloit Corporation Company Profile

Regal Beloit Corporation is a manufacturer of electric motors, electrical motion controls, power generation and power transmission products. The Company operates through three segments: the Commercial and Industrial Systems segment, with its principal line of business in medium and large electric motors, power generation products, high-performance drives and controls and capacitors; the Climate Solutions segment, with its principal line of business in small motors, controls and air moving products, and the Power Transmission Solutions segment, with its principal line of business in power transmission gearing, hydraulic pump drives, open gearing and specialty mechanical products which control motion and torque. It sells its products directly to original equipment manufacturers (OEMs), distributors and end users. It operates distribution facilities in Plainfield, Indiana; McAllen, Texas; LaVergne, Tennessee, and Florence, Kentucky.

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