Sensata Technologies (ST) vs. Its Competitors Critical Review

Sensata Technologies (NYSE:ST – Get Free Report) is one of 216 publicly-traded companies in the “Electrical Equipment” industry, but how does it compare to its rivals? We will compare Sensata Technologies to similar companies based on the strength of its analyst recommendations, institutional ownership, dividends, valuation, earnings, profitability and risk.

Risk and Volatility

Sensata Technologies has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Sensata Technologies’ rivals have a beta of -20.43, suggesting that their average share price is 2,143% less volatile than the S&P 500.

Insider and Institutional Ownership

99.4% of Sensata Technologies shares are held by institutional investors. Comparatively, 37.3% of shares of all “Electrical Equipment” companies are held by institutional investors. 0.7% of Sensata Technologies shares are held by company insiders. Comparatively, 14.5% of shares of all “Electrical Equipment” companies are held by company 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.

Profitability

This table compares Sensata Technologies and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sensata Technologies 9.52% 19.38% 8.43%
Sensata Technologies Competitors -380.43% -44.08% -7.39%

Dividends

Sensata Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 1.2%. Sensata Technologies pays out 19.2% of its earnings in the form of a dividend. As a group, “Electrical Equipment” companies pay a dividend yield of 1.5% and pay out 26.8% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Sensata Technologies and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sensata Technologies $3.70 billion $31.30 million 16.13
Sensata Technologies Competitors $2.38 billion $148.52 million 21.43

Sensata Technologies has higher revenue, but lower earnings than its rivals. Sensata Technologies is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent recommendations for Sensata Technologies and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sensata Technologies 1 4 5 0 2.40
Sensata Technologies Competitors 2297 5180 7231 439 2.38

Sensata Technologies presently has a consensus target price of $50.33, indicating a potential upside of 24.85%. As a group, “Electrical Equipment” companies have a potential upside of 48.21%. Given Sensata Technologies’ rivals higher probable upside, analysts plainly believe Sensata Technologies has less favorable growth aspects than its rivals.

Summary

Sensata Technologies beats its rivals on 9 of the 15 factors compared.

About Sensata Technologies

(Get Free Report)

Sensata Technologies is a global developer and manufacturer of sensors, electrical protection components and other sensing solutions. Its products help customers monitor and control pressure, temperature, position, speed and other operating conditions, as well as protect electrical systems. The company serves customers in markets including automotive, heavy vehicles, industrial equipment, aerospace, heating and air conditioning, and appliances. Its offerings are used in applications ranging from vehicle safety and electrification to industrial automation and equipment protection.

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