Contrasting WABCO (WBC) & Its Peers

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

Institutional & Insider Ownership

95.3% of WABCO shares are owned by institutional investors. Comparatively, 82.2% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 0.8% of WABCO shares are owned by company insiders. Comparatively, 8.9% of shares of all “Heavy Machinery & Vehicles” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

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

Valuation & Earnings

This table compares WABCO and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
WABCO $2.81 billion $223.00 million 25.49
WABCO Competitors $6.06 billion $48.37 million 116.59

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

Profitability

This table compares WABCO and its peers’ 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%

Analyst Ratings

This is a summary of current ratings and price targets for WABCO and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WABCO 0 4 11 0 2.73
WABCO Competitors 171 885 964 17 2.41

WABCO currently has a consensus target price of $159.36, suggesting a potential upside of 12.86%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 5.84%. Given WABCO’s stronger consensus rating and higher probable upside, analysts plainly believe WABCO is more favorable than its peers.

Summary

WABCO beats its peers 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.

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