TKR vs. IEX, SNA, GGG, PNR, NDSN, SWK, WWD, LECO, ITT, and DCI
Should you be buying Timken stock or one of its competitors? The main competitors of Timken include IDEX (IEX), Snap-on (SNA), Graco (GGG), Pentair (PNR), Nordson (NDSN), Stanley Black & Decker (SWK), Woodward (WWD), Lincoln Electric (LECO), ITT (ITT), and Donaldson (DCI). These companies are all part of the "industrial machinery" industry.
IDEX (NYSE:IEX) and Timken (NYSE:TKR) are both industrial products companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, media sentiment, profitability, community ranking and earnings.
98.0% of IDEX shares are held by institutional investors. Comparatively, 89.1% of Timken shares are held by institutional investors. 0.5% of IDEX shares are held by company insiders. Comparatively, 8.7% of Timken shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
IDEX pays an annual dividend of $2.76 per share and has a dividend yield of 1.4%. Timken pays an annual dividend of $1.36 per share and has a dividend yield of 1.6%. IDEX pays out 36.3% of its earnings in the form of a dividend. Timken pays out 25.9% 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. Timken has raised its dividend for 11 consecutive years. Timken is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
IDEX presently has a consensus target price of $250.71, indicating a potential upside of 24.25%. Timken has a consensus target price of $87.91, indicating a potential upside of 5.19%. Given Timken's stronger consensus rating and higher probable upside, equities analysts clearly believe IDEX is more favorable than Timken.
IDEX has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Timken has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.
In the previous week, IDEX had 2 more articles in the media than Timken. MarketBeat recorded 7 mentions for IDEX and 5 mentions for Timken. Timken's average media sentiment score of 1.52 beat IDEX's score of 1.46 indicating that IDEX is being referred to more favorably in the media.
IDEX has higher earnings, but lower revenue than Timken. Timken is trading at a lower price-to-earnings ratio than IDEX, indicating that it is currently the more affordable of the two stocks.
IDEX has a net margin of 17.89% compared to IDEX's net margin of 7.99%. IDEX's return on equity of 17.98% beat Timken's return on equity.
IDEX received 59 more outperform votes than Timken when rated by MarketBeat users. However, 62.79% of users gave Timken an outperform vote while only 58.40% of users gave IDEX an outperform vote.
Summary
IDEX beats Timken on 13 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TKR and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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