Financial Contrast: Regal Rexnord (RRX) and Its Competitors

Regal Rexnord (NYSE:RRXGet Free Report) is one of 25 publicly-traded companies in the “General industrial machinery,” industry, but how does it weigh in compared to its competitors? We will compare Regal Rexnord to related companies based on the strength of its dividends, profitability, analyst recommendations, risk, earnings, institutional ownership and valuation.

Dividends

Regal Rexnord pays an annual dividend of $1.40 per share and has a dividend yield of 1.0%. Regal Rexnord pays out -291.7% of its earnings in the form of a dividend. As a group, “General industrial machinery,” companies pay a dividend yield of 0.9% and pay out 34.5% of their earnings in the form of a dividend. Regal Rexnord has raised its dividend for 19 consecutive years. Regal Rexnord is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Regal Rexnord and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Regal Rexnord $6.25 billion -$57.40 million -297.27
Regal Rexnord Competitors $1.06 billion -$10.65 million -24.84

Regal Rexnord has higher revenue, but lower earnings than its competitors. Regal Rexnord 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Regal Rexnord -0.48% 9.42% 3.86%
Regal Rexnord Competitors -284.56% -485.82% -30.04%

Insider and Institutional Ownership

99.7% of Regal Rexnord shares are owned by institutional investors. Comparatively, 47.1% of shares of all “General industrial machinery,” companies are owned by institutional investors. 0.8% of Regal Rexnord shares are owned by company insiders. Comparatively, 11.3% of shares of all “General industrial machinery,” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Regal Rexnord has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Regal Rexnord’s competitors have a beta of 1.24, meaning that their average share price is 24% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Regal Rexnord and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regal Rexnord 0 0 5 0 3.00
Regal Rexnord Competitors 95 269 379 8 2.40

Regal Rexnord presently has a consensus price target of $192.00, indicating a potential upside of 34.56%. As a group, “General industrial machinery,” companies have a potential upside of 23.23%. Given Regal Rexnord’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Regal Rexnord is more favorable than its competitors.

Summary

Regal Rexnord beats its competitors on 10 of the 15 factors compared.

Regal Rexnord Company Profile

(Get Free Report)

Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets. The Power Efficiency Solutions segment offers AC and DC motors, electronic variable speed controls, and blowers for residential, commercial HVAC, water heaters, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, agriculture, conveying, and general commercial equipment markets. The Automation and Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, rotary precision motion solutions, high-efficiency miniature motors, motion controls, automation transfer switches, and switchgear for industrial applications and automation systems for material handling, aerospace and defense, factory automation, data centers, medical device, packaging, printing, semiconductor, robotic, industrial power tool, mobile off-highway, food and beverage processing, and other applications. The Industrial Systems segment offers integral motors, alternators, and aftermarket parts and kits for agriculture, marine, mining, oil and gas, food and beverage, data centers, prime and standby power, and general industrial equipment markets. It sells its products directly to original equipment manufacturers, distributors, and end-users. The company was formerly known as Regal Beloit Corporation. The company was founded in 1955 and is based in Milwaukee, Wisconsin.

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