Analyzing RBC Bearings (NYSE:RBC) & Proto Labs (NYSE:PRLB)

Proto Labs (NYSE:PRLB) and RBC Bearings (NYSE:RBC) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Profitability

This table compares Proto Labs and RBC Bearings’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Proto Labs	5.44%	4.80%	4.22%
RBC Bearings	16.40%	12.06%	7.78%

Analyst Ratings

This is a breakdown of current recommendations for Proto Labs and RBC Bearings, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Proto Labs	0	1	4	0	2.80
RBC Bearings	0	2	7	1	2.90

Proto Labs presently has a consensus target price of $100.50, indicating a potential upside of 46.11%. RBC Bearings has a consensus target price of $615.44, indicating a potential upside of 28.79%. Given Proto Labs’ higher probable upside, equities research analysts plainly believe Proto Labs is more favorable than RBC Bearings.

Insider & Institutional Ownership

84.5% of Proto Labs shares are owned by institutional investors. 1.3% of Proto Labs shares are owned by company insiders. Comparatively, 1.8% of RBC Bearings 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.

Risk and Volatility

Proto Labs has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, RBC Bearings has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Valuation & Earnings

This table compares Proto Labs and RBC Bearings”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Proto Labs	$533.13 million	3.09	$21.24 million	$1.25	55.03
RBC Bearings	$1.87 billion	8.09	$287.60 million	$10.12	47.22

RBC Bearings has higher revenue and earnings than Proto Labs. RBC Bearings is trading at a lower price-to-earnings ratio than Proto Labs, indicating that it is currently the more affordable of the two stocks.

Summary

RBC Bearings beats Proto Labs on 11 of the 14 factors compared between the two stocks.

About Proto Labs

Proto Labs, Inc., together with its subsidiaries, operates as a digital manufacturer of custom parts in the United States and Europe. The company offers injection molding; computer numerical control machining; three-dimensional printing; and sheet metal fabrication products. It serves developers and engineers, who use 3D computer-aided design software to design products across a range of end-markets. Proto Labs, Inc. was incorporated in 1999 and is headquartered in Maple Plain, Minnesota.

About RBC Bearings

RBC Bearings Incorporated manufactures and markets engineered precision bearings, components, and systems in the United States and internationally. It operates through two segments, Aerospace/Defense and Industrial. The company produces plain bearings with self-lubricating or metal-to-metal designs, including rod end bearings, spherical plain bearings, and journal bearings; roller bearings, such as tapered roller bearings, needle roller bearings, and needle bearing track rollers and cam followers, which are anti-friction products that are used in industrial applications and military aircraft platforms; and ball bearings include high precision aerospace, airframe control, thin section, and industrial ball bearings that utilize high precision ball elements to reduce friction in high-speed applications. In addition, it offers mounted bearing products include mounted ball bearings, mounted roller bearings, and mounted plain bearings; and enclosed gearing product lines, including quantis gearmotor, torque arm, tigear, magnagear and maxum, and controlled start transmission. Further, the company's power transmission components include mechanical drive components, couplings, and conveyor components; engineered hydraulics and valves for aircraft and submarine applications, and aerospace and defense aftermarket services; fasteners; precision mechanical components, which are used in various general industrial applications; and machine tool collets that are used for holding circulars or rod-like pieces. It serves automotive, tool holding, agricultural and semiconductor machinery, commercial and defense aerospace, ground defense, construction and mining, oil and natural resource extraction, heavy truck, marine, rail and train, material handling, food and beverage, packaging and canning, wind, and general industrial markets through its direct sales force, and a network of industrial and aerospace distributors. The company was founded in 1919 and is based in Oxford, Connecticut.