Head-To-Head Comparison: WABCO (WBC) versus Its Competitors

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

Insider & Institutional 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 stock will outperform the market over the long term.

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%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for WABCO and its rivals, as reported 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 price target of $159.36, suggesting a potential upside of 13.53%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 6.42%. Given WABCO’s stronger consensus rating and higher probable upside, analysts clearly believe WABCO is more favorable than its rivals.

Risk & Volatility

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

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
WABCO $2.81 billion $223.00 million 25.34
WABCO Competitors $6.06 billion $48.37 million 116.56

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.

Summary

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

About WABCO

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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