Head to Head Analysis: Babcock (BW) & Its Competitors

Babcock (NYSE:BWGet Free Report) is one of 219 public companies in the “Electrical Equipment” industry, but how does it contrast to its competitors? We will compare Babcock to related companies based on the strength of its profitability, institutional ownership, analyst recommendations, earnings, valuation, dividends and risk.

Profitability

This table compares Babcock and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Babcock -13.63% N/A -1.41%
Babcock Competitors -222.38% -206.58% -8.30%

Risk & Volatility

Babcock has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Babcock’s competitors have a beta of -19.50, meaning that their average share price is 2,050% less volatile than the S&P 500.

Institutional and Insider Ownership

83.2% of Babcock shares are owned by institutional investors. Comparatively, 38.1% of shares of all “Electrical Equipment” companies are owned by institutional investors. 2.8% of Babcock shares are owned by insiders. Comparatively, 15.3% of shares of all “Electrical Equipment” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Babcock and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Babcock 1 2 3 0 2.33
Babcock Competitors 2198 5214 7244 418 2.39

Babcock presently has a consensus target price of $14.25, suggesting a potential upside of 52.77%. As a group, “Electrical Equipment” companies have a potential upside of 20.62%. Given Babcock’s higher possible upside, equities research analysts plainly believe Babcock is more favorable than its competitors.

Valuation and Earnings

This table compares Babcock and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Babcock $653.49 million -$36.16 million -10.60
Babcock Competitors $2.46 billion $139.15 million 28.79

Babcock’s competitors have higher revenue and earnings than Babcock. Babcock 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

Babcock beats its competitors on 7 of the 13 factors compared.

Babcock Company Profile

(Get Free Report)

Babcock & Wilcox Enterprises, Inc. engages in the provision of fossil and renewable power generation and environmental equipment. It operates through the following segments: B&W Renewable, B&W Environmental, and B&W Thermal. The B&W Renewable segment supports a circular economy, diverting waste from landfills to use for power generation and replacing fossil fuels, while recovering metals and reducing emissions. The B&W Environmental segment focuses on systems for cooling, ash handling, particulate control, nitrogen oxides and sulfur dioxides removal, chemical looping for carbon control, and mercury control. The B&W Thermal segment offers steam generation equipment, aftermarket parts, construction, maintenance, and field services for plants in the power generation, oil and gas, and industrial sectors. The company was founded by George H. Babcock, Stephen Wilcox, Jr., and Joseph P. Manton in 1856 and is headquartered in Akron, OH.

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