TKR vs. IEX, SNA, GGG, PNR, NDSN, SWK, LECO, ITT, WWD, and DCI
Should you be buying Timken stock or one of its competitors? The main competitors of Timken include IDEX (IEX), Snap-on (SNA), Graco (GGG), Pentair (PNR), Nordson (NDSN), Stanley Black & Decker (SWK), Lincoln Electric (LECO), ITT (ITT), Woodward (WWD), and Donaldson (DCI). These companies are all part of the "industrial machinery" industry.
Timken (NYSE:TKR) and IDEX (NYSE:IEX) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, community ranking, media sentiment, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.
In the previous week, Timken had 8 more articles in the media than IDEX. MarketBeat recorded 14 mentions for Timken and 6 mentions for IDEX. IDEX's average media sentiment score of 1.22 beat Timken's score of 0.98 indicating that IDEX is being referred to more favorably in the news media.
89.1% of Timken shares are owned by institutional investors. Comparatively, 98.0% of IDEX shares are owned by institutional investors. 8.7% of Timken shares are owned by company insiders. Comparatively, 0.5% of IDEX shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
IDEX has a net margin of 17.89% compared to Timken's net margin of 7.99%. Timken's return on equity of 17.98% beat IDEX's return on equity.
Timken currently has a consensus price target of $87.91, suggesting a potential upside of 2.65%. IDEX has a consensus price target of $250.71, suggesting a potential upside of 18.61%. Given IDEX's stronger consensus rating and higher probable upside, analysts clearly believe IDEX is more favorable than Timken.
IDEX has lower revenue, but higher earnings than Timken. Timken is trading at a lower price-to-earnings ratio than IDEX, indicating that it is currently the more affordable of the two stocks.
Timken has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, IDEX has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.
Timken pays an annual dividend of $1.36 per share and has a dividend yield of 1.6%. IDEX pays an annual dividend of $2.76 per share and has a dividend yield of 1.3%. Timken pays out 25.9% of its earnings in the form of a dividend. IDEX pays out 36.3% 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. Timken is clearly the better dividend stock, given its higher yield and lower payout ratio.
IDEX received 59 more outperform votes than Timken when rated by MarketBeat users. However, 62.79% of users gave Timken an outperform vote while only 58.40% of users gave IDEX an outperform vote.
Summary
IDEX beats Timken on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TKR and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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