Critical Analysis: General Cable Corporation (BGC) & Its Competitors

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

Institutional and Insider Ownership

97.8% of General Cable Corporation shares are held by institutional investors. Comparatively, 66.7% of shares of all “Electrical Components & Equipment” companies are held by institutional investors. 1.8% of General Cable Corporation shares are held by company insiders. Comparatively, 6.4% of shares of all “Electrical Components & Equipment” companies are held by company 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for General Cable Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Cable Corporation 0 2 0 0 2.00
General Cable Corporation Competitors 190 926 1217 7 2.44

As a group, “Electrical Components & Equipment” companies have a potential upside of 1.53%. Given General Cable Corporation’s peers stronger consensus rating and higher possible upside, analysts clearly believe General Cable Corporation has less favorable growth aspects than its peers.

Dividends

General Cable Corporation pays an annual dividend of $0.72 per share and has a dividend yield of 3.4%. General Cable Corporation pays out -20.2% 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 44.2% of their earnings in the form of a dividend. General Cable Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Risk and Volatility

General Cable Corporation has a beta of 2.85, indicating that its share price is 185% more volatile than the S&P 500. Comparatively, General Cable Corporation’s peers have a beta of 1.30, indicating that their average share price is 30% more volatile than the S&P 500.

Earnings & Valuation

This table compares General Cable Corporation and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
General Cable Corporation $3.70 billion $209.90 million -5.88
General Cable Corporation Competitors $1.86 billion $293.26 million -210,205.76

General Cable Corporation has higher revenue, but lower earnings than its peers. General Cable Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares General Cable Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Cable Corporation -4.80% 13.47% 1.10%
General Cable Corporation Competitors -3.49% 5.80% 2.19%

Summary

General Cable Corporation peers beat General Cable Corporation on 8 of the 15 factors compared.

General Cable Corporation Company Profile

General Cable Corporation is engaged in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for use in the energy, industrial, construction, specialty and communications markets. The Company’s segments include North America, Europe, Latin America, and Africa/Asia Pacific. The Company produces and sells to a range of end markets, including markets for electric utility, electrical infrastructure, communications, construction and rod mill products. As of December 31, 2016, the North America segment included 17 manufacturing facilities across the region. The Europe segment consists of six manufacturing facilities across the region. The Latin America segment consists of six manufacturing facilities across the region. The Africa/Asia Pacific segment consists of four manufacturing facilities across the segment.

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