Head to Head Comparison: Hubbell (HUBB) vs. Its Competitors

Hubbell (NYSE:HUBB) is one of 216 public companies in the “Electrical Equipment” industry, but how does it contrast to its competitors? We will compare Hubbell to related businesses based on the strength of its dividends, risk, analyst recommendations, valuation, earnings, profitability and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations for Hubbell and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hubbell	0	5	6	0	2.55
Hubbell Competitors	2294	5177	7229	439	2.38

Hubbell currently has a consensus price target of $546.00, indicating a potential upside of 25.43%. As a group, “Electrical Equipment” companies have a potential upside of 50.92%. Given Hubbell’s competitors higher possible upside, analysts plainly believe Hubbell has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

88.2% of Hubbell shares are held by institutional investors. Comparatively, 37.3% of shares of all “Electrical Equipment” companies are held by institutional investors. 0.6% of Hubbell shares are held by insiders. Comparatively, 14.5% of shares of all “Electrical Equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hubbell	13.78%	27.33%	10.61%
Hubbell Competitors	-354.45%	-44.26%	-7.93%

Risk and Volatility

Hubbell has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Hubbell’s competitors have a beta of -20.83, suggesting that their average share price is 2,183% less volatile than the S&P 500.

Dividends

Hubbell pays an annual dividend of $5.68 per share and has a dividend yield of 1.3%. Hubbell pays out 33.3% 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. Hubbell has raised its dividend for 17 consecutive years. Hubbell lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares Hubbell and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hubbell	$5.84 billion	$887.10 million	25.52
Hubbell Competitors	$2.39 billion	$142.37 million	21.42

Hubbell has higher revenue and earnings than its competitors. Hubbell is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Hubbell beats its competitors on 10 of the 15 factors compared.

Hubbell Company Profile

Hubbell Incorporated is a manufacturer of electrical and utility products serving customers in the energy, industrial, commercial and residential markets. Its products help support the generation, transmission and distribution of electricity, as well as the installation and use of electrical systems. The company’s Utility Solutions business makes products such as connectors, insulators, arresters and other equipment used in electric utility networks. Its Electrical Solutions business supplies wiring devices, lighting and controls, enclosures and related products for buildings and industrial applications.