Wabtec (NYSE:WAB – Get Free Report) is one of 436 public companies in the “Machinery” industry, but how does it contrast to its peers? We will compare Wabtec to similar businesses based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, profitability and institutional ownership.
Dividends
Wabtec pays an annual dividend of $1.24 per share and has a dividend yield of 0.4%. Wabtec pays out 15.4% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.7% and pay out 24.6% of their earnings in the form of a dividend. Wabtec has raised its dividend for 4 consecutive years.
Risk and Volatility
Wabtec has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Wabtec’s peers have a beta of 5.10, meaning that their average share price is 410% more volatile than the S&P 500.
Earnings and Valuation
This table compares Wabtec and its peers revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Wabtec | $11.17 billion | $1.17 billion | 35.70 |
| Wabtec Competitors | $4.65 billion | $364.05 million | 3.78 |
Wabtec has higher revenue and earnings than its peers. Wabtec is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Profitability
This table compares Wabtec and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Wabtec | 11.20% | 15.72% | 7.72% |
| Wabtec Competitors | -1,044.46% | -15.08% | 0.55% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Wabtec and its peers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Wabtec | 0 | 2 | 9 | 1 | 2.92 |
| Wabtec Competitors | 4191 | 14682 | 18180 | 803 | 2.41 |
Wabtec presently has a consensus price target of $320.18, suggesting a potential upside of 11.42%. As a group, “Machinery” companies have a potential upside of 28.93%. Given Wabtec’s peers higher probable upside, analysts plainly believe Wabtec has less favorable growth aspects than its peers.
Insider and Institutional Ownership
91.7% of Wabtec shares are held by institutional investors. Comparatively, 51.7% of shares of all “Machinery” companies are held by institutional investors. 0.6% of Wabtec shares are held by insiders. Comparatively, 14.3% of shares of all “Machinery” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Wabtec beats its peers on 11 of the 15 factors compared.
Wabtec Company Profile
Westinghouse Air Brake Technologies Corporation, together with its subsidiaries, provides technology-based locomotives, equipment, systems, and services for the freight rail and passenger transit industries worldwide. It offers diesel-electric, battery, and liquid natural gas-powered locomotives; engines, electric motors, and propulsion systems; and marine and mining products. The company also offers positive train control equipment; pneumatic braking products; railway electronics; signal design and engineering services; distributed locomotive power, train cruise controls, and train remote controls; industrial/mobile Internet of Things hardware and software, edge-to-cloud, on and off-board analytics and rules, and asset performance management solutions; rail and shipper transportation management, and port visibility and optimization solutions; and network optimization solutions. In addition, it provides freight car trucks, braking equipment, and related components; air compressors and dryers; heat transfer components and systems; track and switch products; new commuter and switcher locomotives; and turbochargers. Further, the company offers freight locomotive overhauls, modernizations, and refurbishment services; locomotive and car maintenance; transit locomotive and car overhaul; unit exchange of locomotive components; and maintenance of way equipment and services. Additionally, it provides railway and freight braking equipment and related components; friction products, such as brake shoes, discs, and pads; heating, ventilation, and air conditioning equipment; access and platform screen doors; pantographs; auxiliary power converter and battery chargers; passenger information systems and closed-circuit television; signaling and railway electric relays; and doors, window assemblies, accessibility lifts, ramps, and electric charging solutions for buses. The company was founded in 1869 and is headquartered in Pittsburgh, Pennsylvania.
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