Reviewing Regal Beloit Corporation (RBC) and Its Peers

Regal Beloit Corporation (NYSE: RBC) is one of 47 publicly-traded companies in the “Electrical Components & Equipment” industry, but how does it weigh in compared to its rivals? We will compare Regal Beloit Corporation to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, valuation, risk, dividends and earnings.

Institutional & Insider Ownership

92.1% of Regal Beloit Corporation shares are held by institutional investors. Comparatively, 66.9% of shares of all “Electrical Components & Equipment” companies are held by institutional investors. 2.2% of Regal Beloit Corporation shares are held by insiders. Comparatively, 6.4% of shares of all “Electrical Components & Equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Regal Beloit Corporation and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regal Beloit Corporation 0 5 4 0 2.44
Regal Beloit Corporation Competitors 186 921 1207 7 2.45

Regal Beloit Corporation currently has a consensus target price of $86.33, suggesting a potential upside of 8.25%. As a group, “Electrical Components & Equipment” companies have a potential upside of 2.46%. Given Regal Beloit Corporation’s higher probable upside, equities analysts clearly believe Regal Beloit Corporation is more favorable than its rivals.

Profitability

This table compares Regal Beloit Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regal Beloit Corporation 6.29% 9.88% 4.79%
Regal Beloit Corporation Competitors -3.49% 5.81% 2.20%

Earnings and Valuation

This table compares Regal Beloit Corporation and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Regal Beloit Corporation $3.25 billion $469.10 million 17.60
Regal Beloit Corporation Competitors $1.86 billion $293.26 million -39.46

Regal Beloit Corporation has higher revenue and earnings than its rivals. Regal Beloit Corporation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Regal Beloit Corporation pays an annual dividend of $1.04 per share and has a dividend yield of 1.3%. Regal Beloit Corporation pays out 23.0% of its earnings in the form of a dividend. As a group, “Electrical Components & Equipment” companies pay a dividend yield of 1.5% and pay out 44.4% of their earnings in the form of a dividend. Regal Beloit Corporation has raised its dividend for 7 consecutive years.

Volatility and Risk

Regal Beloit Corporation has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Regal Beloit Corporation’s rivals have a beta of 1.30, suggesting that their average stock price is 30% more volatile than the S&P 500.

Summary

Regal Beloit Corporation beats its rivals on 10 of the 15 factors compared.

About Regal Beloit Corporation

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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