RBC Bearings (NYSE:RBC – Get Free Report) and Gorman-Rupp (NYSE:GRC – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Profitability
This table compares RBC Bearings and Gorman-Rupp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RBC Bearings | 15.00% | 10.86% | 6.93% |
| Gorman-Rupp | 8.45% | 15.08% | 7.18% |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for RBC Bearings and Gorman-Rupp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RBC Bearings | 0 | 1 | 5 | 2 | 3.13 |
| Gorman-Rupp | 0 | 0 | 1 | 1 | 3.50 |
Valuation & Earnings
This table compares RBC Bearings and Gorman-Rupp”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RBC Bearings | $1.64 billion | 11.02 | $246.20 million | $8.50 | 67.06 |
| Gorman-Rupp | $682.39 million | 2.84 | $53.02 million | $2.23 | 32.92 |
RBC Bearings has higher revenue and earnings than Gorman-Rupp. Gorman-Rupp is trading at a lower price-to-earnings ratio than RBC Bearings, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
59.3% of Gorman-Rupp shares are owned by institutional investors. 1.9% of RBC Bearings shares are owned by insiders. Comparatively, 11.6% of Gorman-Rupp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
RBC Bearings has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, Gorman-Rupp has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.
Summary
RBC Bearings beats Gorman-Rupp on 10 of the 15 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 Gorman-Rupp
The Gorman-Rupp Company designs, manufactures, and sells pumps and pump systems in the United States and internationally. The company’s products include self-priming centrifugal, standard centrifugal, magnetic drive centrifugal, axial and mixed flow, vertical turbine line shaft, submersible, high-pressure booster, rotary gear, diaphragm, bellows, and oscillating pumps. Its products are used in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire suppression, heating, ventilating and air conditioning, military, and other liquid-handling applications. The company markets its products through a network of distributors, manufacturers’ representatives, third-party distributor catalogs, direct sales, and e-commerce. The Gorman-Rupp Company was founded in 1933 and is headquartered in Mansfield, Ohio.
Receive News & Ratings for RBC Bearings Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for RBC Bearings and related companies with MarketBeat.com's FREE daily email newsletter.
