Reviewing Wabco Holdings (WBC) & Its Rivals

Wabco Holdings (NYSE: WBC) is one of 15 publicly-traded companies in the “Heavy Machinery & Vehicles” industry, but how does it weigh in compared to its peers? We will compare Wabco Holdings to related companies based on the strength of its analyst recommendations, valuation, profitability, earnings, institutional ownership, dividends and risk.

Analyst Ratings

This is a summary of current ratings for Wabco Holdings and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wabco Holdings 0 4 11 0 2.73
Wabco Holdings Competitors 169 874 949 17 2.41

Wabco Holdings presently has a consensus target price of $159.36, suggesting a potential upside of 9.38%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 6.75%. Given Wabco Holdings’ stronger consensus rating and higher probable upside, research analysts clearly believe Wabco Holdings is more favorable than its peers.

Earnings and Valuation

This table compares Wabco Holdings and its peers revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Wabco Holdings $2.81 billion $223.00 million 26.30
Wabco Holdings Competitors $4.89 billion $80.18 million 169.16

Wabco Holdings’ peers have higher revenue, but lower earnings than Wabco Holdings. Wabco Holdings is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Wabco Holdings and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wabco Holdings 9.75% 38.93% 10.53%
Wabco Holdings Competitors 4.32% 13.60% 4.34%

Volatility and Risk

Wabco Holdings has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, Wabco Holdings’ peers have a beta of 1.43, suggesting that their average share price is 43% more volatile than the S&P 500.

Institutional & Insider Ownership

98.2% of Wabco Holdings shares are owned by institutional investors. Comparatively, 82.4% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 0.8% of Wabco Holdings shares are owned by insiders. Comparatively, 8.3% of shares of all “Heavy Machinery & Vehicles” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Wabco Holdings beats its peers on 9 of the 13 factors compared.

Wabco Holdings Company Profile

WABCO Holdings Inc. is a supplier of electronic, mechanical, electro-mechanical and aerodynamic products for various manufacturers of commercial trucks, buses and trailers, as well as passenger cars. The Company engineers, develops, manufactures and sells braking, stability, suspension and transmission automation and air management systems primarily for commercial vehicles. Its products are pneumatic anti-lock braking systems, electronic braking systems, electronic stability control systems, brake controls, automated manual transmission systems, air disc brakes, and a range of conventional mechanical products, such as actuators, air compressors and air control valves for medium- and heavy-duty trucks, buses and trailers. The Company’s products also include air compressor and air processing/air management system; electronic and conventional air suspension systems; transmission automation; roll stability support; advanced driver assistance systems, and fleet management solutions.

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