Knorr-Bremse (KNRRY) & The Competition Critical Review

Knorr-Bremse (OTCMKTS:KNRRY) is one of 148 public companies in the “Automobile Components” industry, but how does it contrast to its peers? We will compare Knorr-Bremse to similar companies based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Institutional and Insider Ownership

48.8% of shares of all “Automobile Components” companies are held by institutional investors. 19.9% of shares of all “Automobile Components” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Knorr-Bremse and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Knorr-Bremse	$8.84 billion	$604.17 million	30.05
Knorr-Bremse Competitors	$7.67 billion	$71.64 million	7.77

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Knorr-Bremse and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Knorr-Bremse	1	2	5	0	2.50
Knorr-Bremse Competitors	1023	4376	6019	197	2.46

As a group, “Automobile Components” companies have a potential upside of 67.95%. Given Knorr-Bremse’s peers higher probable upside, analysts plainly believe Knorr-Bremse has less favorable growth aspects than its peers.

Profitability

This table compares Knorr-Bremse and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Knorr-Bremse	7.08%	17.17%	6.13%
Knorr-Bremse Competitors	-166.73%	-15.05%	-1.76%

Dividends

Knorr-Bremse pays an annual dividend of $0.33 per share and has a dividend yield of 1.1%. Knorr-Bremse pays out 33.3% of its earnings in the form of a dividend. As a group, “Automobile Components” companies pay a dividend yield of 10.2% and pay out 24.3% of their earnings in the form of a dividend. Knorr-Bremse lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Knorr-Bremse beats its peers on 8 of the 14 factors compared.

About Knorr-Bremse

Knorr-Bremse AG, together with its subsidiaries, engages in the development, production, marketing, and servicing of braking and other systems for rail and commercial vehicles worldwide. The company operates in two segments, Rail Vehicle Systems and Commercial Vehicle Systems. The Rail Vehicle Systems segment offers braking systems, entrance and HVAC systems, sanitary systems, coupling systems, digital solutions, smart services for optimizing rail traffic, power electrics, rail computing and communication (RCC)/TCMS, signaling systems, stationary and mobile testing equipment, windshield wiper and wash systems, and extensive aftermarket solutions. The Commercial Vehicle Systems segment provides pneumatic braking systems comprising brake control systems, disk brakes, drum brakes, brake cylinders, valves, and pedal units; steering systems; vehicle dynamics solutions, such as anti-lock braking systems and electronic stability programs; driver assistance systems; automated driving and electronic leveling control; energy supply and distribution systems, including compressors and air treatment products; and engine components and transmission control systems, such as vibration dampers, engine air management, transmission control, and gear/clutch actuation products for trucks, buses, trailers, and agricultural machinery. In addition, it offers leasing, holding, logistics, and media and IT services. The company was founded in 1905 and is headquartered in Munich, Germany. Knorr-Bremse AG is a subsidiary of KB Holding GmbH.