Reviewing Wabco Holdings (WBC) & Its Peers

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Wabco Holdings and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wabco Holdings 0 4 11 0 2.73
Wabco Holdings Competitors 168 872 945 17 2.41

Wabco Holdings currently has a consensus target price of $159.36, suggesting a potential upside of 6.90%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 4.35%. Given Wabco Holdings’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Wabco Holdings is more favorable than its competitors.

Risk & Volatility

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’ competitors have a beta of 1.43, suggesting that their average share price is 43% more volatile than the S&P 500.

Profitability

This table compares Wabco Holdings and its competitors’ 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% 13.68% 4.33%

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

Valuation & Earnings

This table compares Wabco Holdings and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Wabco Holdings $2.81 billion $223.00 million 26.91
Wabco Holdings Competitors $4.89 billion $80.18 million 163.95

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

Summary

Wabco Holdings beats its competitors 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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