Head-To-Head Survey: Regal Beloit (RBC) vs. Schneider Electric (SBGSY)

Regal Beloit (NYSE: RBC) and Schneider Electric (OTCMKTS:SBGSY) are both industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Volatility & Risk

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Regal Beloit has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Schneider Electric has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Profitability

This table compares Regal Beloit and Schneider Electric’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regal Beloit 6.34% 9.64% 4.92%
Schneider Electric N/A N/A N/A

Dividends

Regal Beloit pays an annual dividend of $1.04 per share and has a dividend yield of 1.5%. Schneider Electric pays an annual dividend of $0.39 per share and has a dividend yield of 2.3%. Regal Beloit pays out 21.4% of its earnings in the form of a dividend. Schneider Electric pays out 41.1% 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. Regal Beloit has raised its dividend for 8 consecutive years.

Insider and Institutional Ownership

96.7% of Regal Beloit shares are owned by institutional investors. Comparatively, 0.4% of Schneider Electric shares are owned by institutional investors. 2.2% of Regal Beloit shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Regal Beloit and Schneider Electric, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regal Beloit 0 6 7 0 2.54
Schneider Electric 0 0 1 0 3.00

Regal Beloit presently has a consensus target price of $86.18, indicating a potential upside of 20.37%. Given Regal Beloit’s higher possible upside, research analysts clearly believe Regal Beloit is more favorable than Schneider Electric.

Earnings and Valuation

This table compares Regal Beloit and Schneider Electric’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Regal Beloit $3.36 billion 0.94 $213.00 million $4.87 14.70
Schneider Electric $27.95 billion 1.79 $2.43 billion $0.95 17.78

Schneider Electric has higher revenue and earnings than Regal Beloit. Regal Beloit is trading at a lower price-to-earnings ratio than Schneider Electric, indicating that it is currently the more affordable of the two stocks.

Summary

Regal Beloit beats Schneider Electric on 11 of the 17 factors compared between the two stocks.

About Regal Beloit

Regal Beloit Corporation, together with its subsidiaries, designs, manufactures, and sells electric motors, electrical motion controls, and power generation and power transmission products worldwide. It operates through three segments: Commercial and Industrial Systems, Climate Solutions, and Power Transmission Solutions. The Commercial and Industrial Systems segment provides AC and DC motors, and controls; motors, electronic variable speed controls, and blowers; and starters, contactors, relays, variable frequency drives, and integrated solutions of components. This segment also offers precision stator and rotor kits; hazardous duty motors; and electric generators, automatic transfer switches, power generation and distribution switch gears, and components and system controls. It serves commercial heating, ventilation, and air conditioning (HVAC); pool and spa; standby and critical power; and oil and gas system markets. The Climate Solutions segment offers motors, electronic variable speed controls, and blowers, as well as capacitors, precision stators, and rotor sets for residential and light commercial HVAC, water heaters, and commercial refrigeration markets. The Power Transmission Solutions segment provides mounted and unmounted bearings; conveyor products; disc products, patented diaphragms, gear couplings, couplings and transmission elements, gears, grids, jaws, elastomers, and joints; mechanical power transmission drives, components, and bearings; and worm gearing, shaft mount reducer, helical concentric and right angle, bevel and miter gearing, center pivot gearing, and open gearing products. It serves beverage, bulk handling, metals, special machinery, energy, and aerospace and general industrial markets. The company sells its products directly, as well as through independent sales representatives and distributors. Regal Beloit Corporation was founded in 1955 and is based in Beloit, Wisconsin.

About Schneider Electric

Schneider Electric S.E. provides energy management and automation solutions worldwide. It operates through four businesses: Buildings, Infrastructure, Industry, and IT. The Building business provides low voltage power and building automation products and solutions that address the needs of various end markets from buildings to industries and infrastructure to data centers. The Infrastructure business offers medium voltage distribution and grid automation solutions to customers in oil and gas, electric utilities, and transportation markets. The Industry business provides automation and control solutions for customers in water, mining minerals and metals, and food beverages industries, as well as OEMs. The IT business offers power and cooling services for banking and insurance, IT, and cloud and telecom customers. Schneider Electric S.E. was founded in 1836 and is headquartered in Rueil Malmaison, France.

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