Itron (ITRI) and Regal Beloit Corporation (RBC) Financial Analysis

Regal Beloit Corporation (NYSE: RBC) and Itron (NASDAQ:ITRI) are both mid-cap industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.

Analyst Ratings

This is a summary of recent ratings for Regal Beloit Corporation and Itron, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regal Beloit Corporation 0 5 5 0 2.50
Itron 0 3 5 0 2.63

Regal Beloit Corporation currently has a consensus target price of $86.14, suggesting a potential upside of 13.50%. Itron has a consensus target price of $81.75, suggesting a potential upside of 24.43%. Given Itron’s stronger consensus rating and higher possible upside, analysts plainly believe Itron is more favorable than Regal Beloit Corporation.

Profitability

This table compares Regal Beloit Corporation and Itron’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regal Beloit Corporation 6.28% 9.76% 4.84%
Itron 3.42% 14.84% 6.26%

Earnings & Valuation

This table compares Regal Beloit Corporation and Itron’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Regal Beloit Corporation $3.22 billion 1.04 $203.40 million $4.60 16.50
Itron $2.01 billion 1.26 $31.77 million $1.71 38.42

Regal Beloit Corporation has higher revenue and earnings than Itron. Regal Beloit Corporation is trading at a lower price-to-earnings ratio than Itron, indicating that it is currently the more affordable of the two stocks.

Dividends

Regal Beloit Corporation pays an annual dividend of $1.04 per share and has a dividend yield of 1.4%. Itron does not pay a dividend. Regal Beloit Corporation pays out 22.6% of its earnings in the form of a dividend. Regal Beloit Corporation has raised its dividend for 7 consecutive years.

Risk and Volatility

Regal Beloit Corporation has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Itron has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Institutional and Insider Ownership

92.8% of Regal Beloit Corporation shares are owned by institutional investors. Comparatively, 93.1% of Itron shares are owned by institutional investors. 2.2% of Regal Beloit Corporation shares are owned by company insiders. Comparatively, 2.0% of Itron shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

About Regal Beloit Corporation

Regal Beloit Corporation is a manufacturer of electric motors, electrical motion controls, power generation and power transmission products. The Company operates through three segments: the Commercial and Industrial Systems segment, with its principal line of business in medium and large electric motors, power generation products, high-performance drives and controls and capacitors; the Climate Solutions segment, with its principal line of business in small motors, controls and air moving products, and the Power Transmission Solutions segment, with its principal line of business in power transmission gearing, hydraulic pump drives, open gearing and specialty mechanical products which control motion and torque. It sells its products directly to original equipment manufacturers (OEMs), distributors and end users. It operates distribution facilities in Plainfield, Indiana; McAllen, Texas; LaVergne, Tennessee, and Florence, Kentucky.

About Itron

Itron, Inc. (Itron) is a technology and service company. The Company provides solutions that measure, manage and analyze energy and water use. The Company operates through three segments: Electricity, Gas and Water. It provides a portfolio of products, solutions, software and services to electric, gas and water utility customers across the globe. It offers solutions that enable electric and natural gas utilities to build smart grids to manage assets. It offers a product portfolio, including standard meters and smart metering products, systems and services, for applications in the residential and commercial industrial markets for water and heat. The Company operates under the Itron brand across the world. Its Gas and Water manufacturing facilities are located throughout the world, while its Electricity manufacturing facilities are located in Europe, Middle East and Africa (EMEA), and North America.

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