Reviewing AMETEK (AME) and Its Peers

AMETEK (NYSE:AME) is one of 377 publicly-traded companies in the “Electronic Equipment, Instruments & Components” industry, but how does it compare to its rivals? We will compare AMETEK to similar companies based on the strength of its analyst recommendations, institutional ownership, dividends, valuation, earnings, profitability and risk.

Analyst Recommendations

This is a summary of recent recommendations for AMETEK and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMETEK	0	5	13	1	2.79
AMETEK Competitors	2047	7599	10422	660	2.47

AMETEK presently has a consensus target price of $276.56, indicating a potential upside of 16.15%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 34.04%. Given AMETEK’s rivals higher probable upside, analysts plainly believe AMETEK has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

87.4% of AMETEK shares are held by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are held by institutional investors. 0.5% of AMETEK shares are held by company insiders. Comparatively, 16.2% of shares of all “Electronic Equipment, Instruments & Components” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

AMETEK pays an annual dividend of $1.36 per share and has a dividend yield of 0.6%. AMETEK pays out 19.9% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 1.9% and pay out 70.2% of their earnings in the form of a dividend. AMETEK has raised its dividend for 6 consecutive years.

Profitability

This table compares AMETEK and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMETEK	20.04%	16.93%	11.26%
AMETEK Competitors	-158.14%	-25.87%	-6.85%

Valuation & Earnings

This table compares AMETEK and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AMETEK	$7.40 billion	$1.48 billion	34.81
AMETEK Competitors	$4.00 billion	$172.92 million	5.73

AMETEK has higher revenue and earnings than its rivals. AMETEK is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

AMETEK has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, AMETEK’s rivals have a beta of -0.25, suggesting that their average share price is 125% less volatile than the S&P 500.

Summary

AMETEK beats its rivals on 12 of the 15 factors compared.

AMETEK Company Profile

AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices in the North America, Europe, Asia, and South America, and internationally. The company's EIG segment offers advanced instruments for the process, aerospace, power, and industrial markets; process and analytical instruments for the oil and gas, petrochemical, pharmaceutical, semiconductor, automation, and food and beverage industries; instruments to the laboratory equipment, ultra-precision manufacturing, medical, and test and measurement markets; power quality monitoring and c devices, uninterruptible power supplies, programmable power and electromagnetic compatibility test equipment, and sensors for gas turbines and dashboard instruments; heavy trucks, instrumentation, and controls for the food and beverage industries; and aircraft and engine sensors, power supplies, embedded computing, monitoring, fuel and fluid measurement, and data acquisition systems for aerospace and defense industry. Its EMG segment offers engineered medical components and devices, automation solutions, thermal management systems, specialty metals, and electrical interconnects; single-use and consumable surgical instruments, implantable components, and drug delivery systems; engineered electrical connectors and electronics packaging to protect sensitive devices and mission-critical electronics; precision motion control products for data storage, medical devices, business equipment, and automation; high-purity powdered metals, strips and foils, specialty clad metals, and metal matrix composites; motor-blower systems and heat exchangers for thermal management, military and commercial aircraft, and military ground vehicles; motors for commercial appliances, food and beverage machines, hydraulic pumps, and industrial blowers; and operates a network of aviation maintenance, repair, and overhaul facilities. AMETEK, Inc. was incorporated in 1930 and is headquartered in Berwyn, Pennsylvania.