Ralliant (RAL) vs. Its Peers Critical Review

Ralliant (NYSE:RAL) is one of 377 publicly-traded companies in the “Electronic Equipment, Instruments & Components” industry, but how does it compare to its peers? We will compare Ralliant to similar companies based on the strength of its dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Dividends

Ralliant pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Ralliant pays out -1.8% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 1.7% and pay out 67.0% of their earnings in the form of a dividend.

Institutional & Insider Ownership

43.8% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by institutional investors. 0.4% of Ralliant shares are owned by insiders. Comparatively, 16.2% of shares of all “Electronic Equipment, Instruments & Components” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Ralliant and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ralliant	-56.38%	14.97%	6.99%
Ralliant Competitors	-203.78%	-149.67%	-7.19%

Analyst Ratings

This is a summary of recent recommendations for Ralliant and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ralliant	1	3	7	1	2.67
Ralliant Competitors	1967	7376	10104	610	2.47

Ralliant currently has a consensus target price of $75.70, suggesting a potential upside of 4.94%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 13.52%. Given Ralliant’s peers higher probable upside, analysts clearly believe Ralliant has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Ralliant and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ralliant	$2.07 billion	-$1.22 billion	-6.65
Ralliant Competitors	$4.02 billion	$183.66 million	-4.21

Ralliant’s peers have higher revenue and earnings than Ralliant. Ralliant is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Ralliant has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Ralliant’s peers have a beta of -0.22, meaning that their average stock price is 122% less volatile than the S&P 500.

Summary

Ralliant beats its peers on 8 of the 15 factors compared.

Ralliant Company Profile

Ralliant Corporation is a provider of precision technologies which specializes in designing, developing, manufacturing and servicing precision instruments and engineered products. Ralliant Corporation is based in RALEIGH, N.C.