Comparing Timken (NYSE:TKR) & Xenonics (OTCMKTS:XNNHQ)

Xenonics (OTCMKTS:XNNHQ) and Timken (NYSE:TKR) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Institutional & Insider Ownership

89.1% of Timken shares are owned by institutional investors. 8.9% of Xenonics shares are owned by company insiders. Comparatively, 8.7% of Timken shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Xenonics and Timken, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xenonics	0	0	0	0	0.00
Timken	0	8	4	0	2.33

Timken has a consensus target price of $82.20, suggesting a potential upside of 3.97%. Given Timken’s stronger consensus rating and higher probable upside, analysts clearly believe Timken is more favorable than Xenonics.

Profitability

This table compares Xenonics and Timken’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xenonics	N/A	N/A	N/A
Timken	6.54%	11.88%	5.65%

Earnings and Valuation

This table compares Xenonics and Timken”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xenonics	N/A	N/A	N/A	N/A	N/A
Timken	$4.54 billion	1.21	$352.70 million	$4.23	18.69

Timken has higher revenue and earnings than Xenonics.

Summary

Timken beats Xenonics on 8 of the 9 factors compared between the two stocks.

About Xenonics

Xenonics Holdings, Inc. designs, manufactures, and markets portable illumination products and low light viewing systems (night vision) in the United States. It offers NightHunter ONE, a lightweight illumination system, which can be used on vehicles, boats, and helicopters; NightHunter EXT, a lightweight illumination system for mounting on heavy guns and for use on stationary platforms, or vehicles, boats, or helicopters; and NightHunter 3 for handheld use or mounting on light, medium, and heavy machine guns or vehicles. The company also provides SuperVision that allows user to see in the dark with clarity than conventional night vision; SuperVision Video Out to connect the video signal to a computer recording device or monitor for surveillance; SuperVision Tactical Packages for law enforcement professionals; and SuperVision Vehicle Patrol Packages to make law enforcement patrol operations safer. It markets its illumination products under the NightHunter brand and night vision products under the SuperVision brand. The company serves military forces; the U.S. Department of Homeland Security; law enforcement, fire, search, and rescue; and commercial markets. Xenonics Holdings, Inc. was founded in 1996 and is headquartered in Carlsbad, California.

About Timken

The Timken Company designs, manufactures, and sells engineered bearings and industrial motion products, and related services in the United States and internationally. The company's Engineered Bearings segment provides various bearing products, including tapered, spherical, and cylindrical roller bearings; plain bearings, metal-polymer bearings, and rod end bearings; radial, angular, and precision ball bearings; thrust and specialty ball bearings; journal bearings; and housed or mounted bearings. This segment serves wind energy, agriculture, construction, food and beverage, metals and mining, automotive and truck, aerospace, rail, and other industries under the Timken, GGB, and Fafnir brands. Its Industrial Motion segment offers a portfolio of engineered products comprising industrial drives, automatic lubrication systems, linear motion products and systems, chains, belts, seals, couplings, filtration systems, and industrial clutches and brakes. It also provides industrial drivetrain and bearing repairing services. This segment serves a range of industries, such as solar energy, automation, construction, agriculture and turf, passenger rail, marine, aerospace, packaging and logistics, medical, and others under the Philadelphia Gear, Cone Drive, Rollon, Nadella, Groeneveld, BEKA, Diamond, Drives, Timken Belts, Spinea, Des-Case, Lagersmit, Lovejoy, and PT Tech brands. The Timken Company was founded in 1899 and is headquartered in North Canton, Ohio.