RBC Bearings (RBC) Competitors

Xylem (NYSE:XYL) and RBC Bearings (NYSE:RBC) are both large-cap industrial machinery companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, media sentiment, analyst recommendations, institutional ownership and profitability.

Does the media prefer XYL or RBC?

In the previous week, Xylem had 17 more articles in the media than RBC Bearings. MarketBeat recorded 30 mentions for Xylem and 13 mentions for RBC Bearings. RBC Bearings' average media sentiment score of 1.49 beat Xylem's score of 1.33 indicating that RBC Bearings is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Xylem	22 Very Positive mention(s)	0 Positive mention(s)	7 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
RBC Bearings	12 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is XYL or RBC more profitable?

RBC Bearings has a net margin of 15.20% compared to Xylem's net margin of 10.74%. Xylem's return on equity of 10.33% beat RBC Bearings' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Xylem	10.74%	10.33%	6.72%
RBC Bearings	15.20%	10.14%	6.44%

Do insiders and institutionals have more ownership in XYL or RBC?

88.0% of Xylem shares are held by institutional investors. 0.3% of Xylem shares are held by insiders. Comparatively, 1.9% of RBC Bearings shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Which has better valuation and earnings, XYL or RBC?

Xylem has higher revenue and earnings than RBC Bearings. Xylem is trading at a lower price-to-earnings ratio than RBC Bearings, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xylem	$8.56B	4.02	$890M	$3.85	36.77
RBC Bearings	$1.67B	7.37	$246.20M	$7.94	49.02

Which has more volatility & risk, XYL or RBC?

Xylem has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, RBC Bearings has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500.

Is XYL or RBC a better dividend stock?

Xylem pays an annual dividend of $1.60 per share and has a dividend yield of 1.1%. RBC Bearings pays an annual dividend of $1.32 per share and has a dividend yield of 0.3%. Xylem pays out 41.6% of its earnings in the form of a dividend. RBC Bearings pays out 16.6% 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. Xylem has raised its dividend for 2 consecutive years. Xylem is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do analysts prefer XYL or RBC?

Xylem currently has a consensus price target of $152.29, indicating a potential upside of 7.57%. RBC Bearings has a consensus price target of $425.17, indicating a potential upside of 9.23%. Given RBC Bearings' stronger consensus rating and higher probable upside, analysts plainly believe RBC Bearings is more favorable than Xylem.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xylem	0 Sell rating(s)	4 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.60
RBC Bearings	0 Sell rating(s)	2 Hold rating(s)	5 Buy rating(s)	1 Strong Buy rating(s)	2.88

Summary

RBC Bearings beats Xylem on 11 of the 20 factors compared between the two stocks.