General Cable (BGC) versus Belden (BDC) Head to Head Survey

General Cable (NYSE: BGC) and Belden (NYSE:BDC) are both industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Institutional and Insider Ownership

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98.4% of General Cable shares are owned by institutional investors. 1.8% of General Cable shares are owned by insiders. Comparatively, 1.3% of Belden shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

General Cable pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. Belden pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Belden pays out 3.7% of its earnings in the form of a dividend.

Profitability

This table compares General Cable and Belden’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Cable -1.48% 45.96% 2.83%
Belden 3.90% 18.20% 6.97%

Valuation & Earnings

This table compares General Cable and Belden’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
General Cable $3.84 billion 0.39 -$56.60 million N/A N/A
Belden $2.39 billion 1.15 $93.21 million $5.35 12.23

Belden has lower revenue, but higher earnings than General Cable.

Volatility and Risk

General Cable has a beta of 2.55, indicating that its share price is 155% more volatile than the S&P 500. Comparatively, Belden has a beta of 2.35, indicating that its share price is 135% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for General Cable and Belden, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Cable 0 0 0 0 N/A
Belden 0 1 7 0 2.88

Belden has a consensus price target of $91.80, suggesting a potential upside of 40.28%. Given Belden’s higher probable upside, analysts plainly believe Belden is more favorable than General Cable.

Summary

General Cable beats Belden on 8 of the 14 factors compared between the two stocks.

General Cable 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.

Belden Company Profile

Belden Inc. designs, manufactures, and markets signal transmission solutions worldwide. It operates through Broadcast Solutions, Enterprise Solutions, Industrial Solutions, and Network Solutions segments. The Broadcast Solutions segment offers camera solutions, production switchers, server and storage systems for instant replay applications, interfaces and routers, monitoring systems, in-home network systems, playout systems, outside plant connectivity products, and other cable, and connectivity products. The Enterprise Solutions segment provides copper cable and connectivity solutions, fiber cable and connectivity solutions, and racks and enclosures; and power, cooling, and airflow management products for mission-critical data center operations. The Industrial Solutions segment offers infrastructure components and on-machine connectivity systems, including industrial and input/output (I/O) connectors, industrial cables, IP and networking cables, I/O modules, distribution boxes, ruggedized controls and sensors, customer specific wiring solutions, and controllers and sensors for use in industrial automation applications. The Network Solutions provides foundational controls for protecting enterprises against cyberattacks, automating IT regulatory compliance and improving operational efficiency; and software and services that protect against cyberattacks and data breaches with integrated security controls that discover assets, harden configurations, identify vulnerabilities and detect threats. It sells its products to distributors, end-users, installers, and original equipment manufacturers. The company was formerly known as Belden CDT Inc. and changed its name to Belden Inc. in May 2007. Belden Inc. was founded in 1902 and is based in St. Louis, Missouri.

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