Knorr-Bremse (KNRRY) versus Its Rivals Financial Contrast

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

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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Knorr-Bremse	$8.84 billion	$604.17 million	27.25
Knorr-Bremse Competitors	$6.51 billion	$71.64 million	7.37

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Knorr-Bremse	7.37%	18.30%	6.53%
Knorr-Bremse Competitors	-166.26%	-15.18%	-1.79%

Analyst Ratings

This is a breakdown of current ratings and price targets for Knorr-Bremse and its rivals, as provided 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	1032	4394	6042	200	2.46

As a group, “Automobile Components” companies have a potential upside of 62.72%. Given Knorr-Bremse’s rivals higher probable upside, analysts clearly believe Knorr-Bremse has less favorable growth aspects than its rivals.

Dividends

Knorr-Bremse pays an annual dividend of $0.33 per share and has a dividend yield of 1.1%. Knorr-Bremse pays out 31.1% of its earnings in the form of a dividend. As a group, “Automobile Components” companies pay a dividend yield of 9.8% and pay out 24.3% of their earnings in the form of a dividend. Knorr-Bremse lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

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

Knorr-Bremse Company Profile

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.