Analyzing AB SKF (SKFRY) & The Timken (TKR)
Resource from: https://stocknewstimes.com/2018/03/18/analyzing-ab-skf-skfry-the-timken-tkr.html Likes:373
Mar 19,2018
AB SKF (OTCMKTS: SKFRY) and The Timken (NYSE:TKR) are both mid-cap industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.
Dividends
AB SKF pays an annual dividend of $0.51 per share and has a dividend yield of 2.4%. The Timken pays an annual dividend of $1.08 per share and has a dividend yield of 2.4%. AB SKF pays out 36.2% of its earnings in the form of a dividend. The Timken pays out 42.0% 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. The Timken has raised its dividend for 4 consecutive years. AB SKF is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
AB SKF has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, The Timken has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.
Profitability
AB SKF has higher revenue and earnings than The Timken. AB SKF is trading at a lower price-to-earnings ratio than The Timken, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for AB SKF and The Timken, as reported by MarketBeat.com.
The Timken has a consensus price target of $51.00, suggesting a potential upside of 11.60%. Given The Timken’s stronger consensus rating and higher probable upside, analysts plainly believe The Timken is more favorable than AB SKF.
Insider and Institutional Ownership
0.5% of AB SKF shares are held by institutional investors. Comparatively, 79.5% of The Timken shares are held by institutional investors. 11.1% of The Timken shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
The Timken beats AB SKF on 10 of the 17 factors compared between the two stocks.
About AB SKF
AB SKF is a supplier of products, solutions and services within rolling bearings, seals, mechatronics, services and lubrication systems. The Company’s services include technical support, maintenance services, condition monitoring, asset efficiency optimization, engineering consultancy and training. The Company’s segments include Industrial and Automotive. The Company develops and manufactures a range of products for the industrial market, including bearings, seals, lubrication systems and condition monitoring. It also provides a range of services and solutions around the rotating shaft in the areas of machine health, reliability engineering and remanufacturing. The Company provides a range of products, solutions and services to manufacturers of cars, light- and heavy trucks, trailers, buses and two-wheelers. The vehicle aftermarket is served directly, as well as indirectly through a network of distributors and dealers.
About The Timken
The Timken Company engineers, manufactures, and markets bearings, transmissions, gearboxes, belts, chains, lubrication systems, couplings, industrial clutches and brakes, and related products worldwide. It operates through two segments, Mobile Industries and Process Industries. The Mobile Industries segment offers a portfolio of bearings, seals, lubrication devices, and systems, as well as power transmission components, engineered chains, augers, belts, couplings, clutches and brakes, and related products and maintenance services to original equipment manufacturers (OEMs) and end users of off-highway equipment for the agricultural, construction, mining, outdoor power equipment, and power sports markets; and on-highway vehicles, including passenger cars, light trucks, and medium- and heavy-duty trucks, as well as rail cars and locomotives. It also provides power transmission systems and flight-critical components for civil and military aircraft, which comprise bearings, helicopter transmission systems, rotor-head assemblies, turbine engine components, gears, and housings. This segment sells it parts through a network of authorized automotive and heavy-truck distributors to individual end users, equipment owners, operators, and maintenance shops. The Process Industries segment supplies industrial bearings and assemblies; power transmission components, including gears and gearboxes; and couplings, seals, lubricants, chains, belts, and related products and services to OEMs and end-users in various industries. It also supports aftermarket sales and service needs through its network of authorized industrial distributors; and offers repair and service for bearings and gearboxes, as well as electric motor rewind, repair, and services to end users. The Timken Company was founded in 1899 and is headquartered in North Canton, Ohio.
Dividends
AB SKF pays an annual dividend of $0.51 per share and has a dividend yield of 2.4%. The Timken pays an annual dividend of $1.08 per share and has a dividend yield of 2.4%. AB SKF pays out 36.2% of its earnings in the form of a dividend. The Timken pays out 42.0% 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. The Timken has raised its dividend for 4 consecutive years. AB SKF is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
AB SKF has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, The Timken has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.
Profitability
This table compares AB SKF and The Timken’s net margins, return on equity and return on assets.
Earnings and Valuation
This table compares AB SKF and The Timken’s revenue, earnings per share and valuation.
AB SKF has higher revenue and earnings than The Timken. AB SKF is trading at a lower price-to-earnings ratio than The Timken, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for AB SKF and The Timken, as reported by MarketBeat.com.
The Timken has a consensus price target of $51.00, suggesting a potential upside of 11.60%. Given The Timken’s stronger consensus rating and higher probable upside, analysts plainly believe The Timken is more favorable than AB SKF.
Insider and Institutional Ownership
0.5% of AB SKF shares are held by institutional investors. Comparatively, 79.5% of The Timken shares are held by institutional investors. 11.1% of The Timken shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
The Timken beats AB SKF on 10 of the 17 factors compared between the two stocks.
About AB SKF
AB SKF is a supplier of products, solutions and services within rolling bearings, seals, mechatronics, services and lubrication systems. The Company’s services include technical support, maintenance services, condition monitoring, asset efficiency optimization, engineering consultancy and training. The Company’s segments include Industrial and Automotive. The Company develops and manufactures a range of products for the industrial market, including bearings, seals, lubrication systems and condition monitoring. It also provides a range of services and solutions around the rotating shaft in the areas of machine health, reliability engineering and remanufacturing. The Company provides a range of products, solutions and services to manufacturers of cars, light- and heavy trucks, trailers, buses and two-wheelers. The vehicle aftermarket is served directly, as well as indirectly through a network of distributors and dealers.
About The Timken
The Timken Company engineers, manufactures, and markets bearings, transmissions, gearboxes, belts, chains, lubrication systems, couplings, industrial clutches and brakes, and related products worldwide. It operates through two segments, Mobile Industries and Process Industries. The Mobile Industries segment offers a portfolio of bearings, seals, lubrication devices, and systems, as well as power transmission components, engineered chains, augers, belts, couplings, clutches and brakes, and related products and maintenance services to original equipment manufacturers (OEMs) and end users of off-highway equipment for the agricultural, construction, mining, outdoor power equipment, and power sports markets; and on-highway vehicles, including passenger cars, light trucks, and medium- and heavy-duty trucks, as well as rail cars and locomotives. It also provides power transmission systems and flight-critical components for civil and military aircraft, which comprise bearings, helicopter transmission systems, rotor-head assemblies, turbine engine components, gears, and housings. This segment sells it parts through a network of authorized automotive and heavy-truck distributors to individual end users, equipment owners, operators, and maintenance shops. The Process Industries segment supplies industrial bearings and assemblies; power transmission components, including gears and gearboxes; and couplings, seals, lubricants, chains, belts, and related products and services to OEMs and end-users in various industries. It also supports aftermarket sales and service needs through its network of authorized industrial distributors; and offers repair and service for bearings and gearboxes, as well as electric motor rewind, repair, and services to end users. The Timken Company was founded in 1899 and is headquartered in North Canton, Ohio.
(https://stocknewstimes.com/2018/03/18/analyzing-ab-skf-skfry-the-timken-tkr.html)
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1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
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