RBC Bearings (NYSE:RBC – Get Free Report) and Proto Labs (NYSE:PRLB – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.
Volatility and Risk
RBC Bearings has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Proto Labs has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.
Valuation and Earnings
This table compares RBC Bearings and Proto Labs”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RBC Bearings | $1.87 billion | 8.09 | $287.60 million | $10.12 | 47.22 |
| Proto Labs | $533.13 million | 3.09 | $21.24 million | $1.25 | 55.03 |
RBC Bearings has higher revenue and earnings than Proto Labs. RBC Bearings is trading at a lower price-to-earnings ratio than Proto Labs, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
84.5% of Proto Labs shares are held by institutional investors. 1.8% of RBC Bearings shares are held by company insiders. Comparatively, 1.3% of Proto Labs shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares RBC Bearings and Proto Labs’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RBC Bearings | 16.40% | 12.06% | 7.78% |
| Proto Labs | 5.44% | 4.80% | 4.22% |
Analyst Ratings
This is a summary of current ratings and target prices for RBC Bearings and Proto Labs, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RBC Bearings | 0 | 2 | 7 | 1 | 2.90 |
| Proto Labs | 0 | 1 | 4 | 0 | 2.80 |
RBC Bearings currently has a consensus price target of $615.44, indicating a potential upside of 28.79%. Proto Labs has a consensus price target of $100.50, indicating a potential upside of 46.11%. Given Proto Labs’ higher probable upside, analysts clearly believe Proto Labs is more favorable than RBC Bearings.
Summary
RBC Bearings beats Proto Labs on 11 of the 14 factors compared between the two stocks.
About RBC Bearings
RBC Bearings Incorporated manufactures and markets engineered precision bearings, components, and systems in the United States and internationally. It operates through two segments, Aerospace/Defense and Industrial. The company produces plain bearings with self-lubricating or metal-to-metal designs, including rod end bearings, spherical plain bearings, and journal bearings; roller bearings, such as tapered roller bearings, needle roller bearings, and needle bearing track rollers and cam followers, which are anti-friction products that are used in industrial applications and military aircraft platforms; and ball bearings include high precision aerospace, airframe control, thin section, and industrial ball bearings that utilize high precision ball elements to reduce friction in high-speed applications. In addition, it offers mounted bearing products include mounted ball bearings, mounted roller bearings, and mounted plain bearings; and enclosed gearing product lines, including quantis gearmotor, torque arm, tigear, magnagear and maxum, and controlled start transmission. Further, the company's power transmission components include mechanical drive components, couplings, and conveyor components; engineered hydraulics and valves for aircraft and submarine applications, and aerospace and defense aftermarket services; fasteners; precision mechanical components, which are used in various general industrial applications; and machine tool collets that are used for holding circulars or rod-like pieces. It serves automotive, tool holding, agricultural and semiconductor machinery, commercial and defense aerospace, ground defense, construction and mining, oil and natural resource extraction, heavy truck, marine, rail and train, material handling, food and beverage, packaging and canning, wind, and general industrial markets through its direct sales force, and a network of industrial and aerospace distributors. The company was founded in 1919 and is based in Oxford, Connecticut.
About Proto Labs
Proto Labs, Inc., together with its subsidiaries, operates as a digital manufacturer of custom parts in the United States and Europe. The company offers injection molding; computer numerical control machining; three-dimensional printing; and sheet metal fabrication products. It serves developers and engineers, who use 3D computer-aided design software to design products across a range of end-markets. Proto Labs, Inc. was incorporated in 1999 and is headquartered in Maple Plain, Minnesota.
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