Head-To-Head Contrast: Timken (NYSE:TKR) & Hurco Companies (NASDAQ:HURC)

Hurco Companies (NASDAQ:HURC) and Timken (NYSE:TKR) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Profitability

This table compares Hurco Companies and Timken’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hurco Companies	-3.58%	-3.37%	-2.51%
Timken	5.43%	12.63%	6.21%

Valuation and Earnings

This table compares Hurco Companies and Timken”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hurco Companies	$178.55 million	0.77	-$15.12 million	($1.03)	-20.68
Timken	$4.58 billion	1.74	$288.40 million	$3.69	31.11

Timken has higher revenue and earnings than Hurco Companies. Hurco Companies is trading at a lower price-to-earnings ratio than Timken, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Hurco Companies and Timken, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hurco Companies	1	0	0	0	1.00
Timken	0	3	7	0	2.70

Timken has a consensus price target of $147.00, suggesting a potential upside of 28.05%. Given Timken’s stronger consensus rating and higher possible upside, analysts clearly believe Timken is more favorable than Hurco Companies.

Volatility and Risk

Hurco Companies has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Timken has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Insider and Institutional Ownership

74.4% of Hurco Companies shares are owned by institutional investors. Comparatively, 89.1% of Timken shares are owned by institutional investors. 9.9% of Hurco Companies shares are owned by insiders. Comparatively, 8.1% of Timken shares are owned 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.

Summary

Timken beats Hurco Companies on 13 of the 14 factors compared between the two stocks.

About Hurco Companies

Hurco Companies, Inc., an industrial technology company, designs, manufactures, and sells computerized machine tools to companies in the metal cutting industry worldwide. Its principal products include general-purpose computerized machine tools, including vertical and horizontal machining centers, turning centers, and toolroom machines. The company also provides computer control systems and related software for press brake applications. In addition, it offers machine tool components, automation integration equipment, and solutions for job shops; and software options, control upgrades, and accessories and replacement parts for its products, as well as customer service, training, and applications support services. Further, the company provides Autobend computer control systems for press brake machines. It serves independent job shops and specialized short-run production applications within large manufacturing operations, as well as precision tool, die, and mold manufacturers in aerospace, defense, medical equipment, energy, automotive/transportation, electronics, and computer industries. The company sells its products under the Hurco, Milltronics, and Takumi brands through independent agents and distributors, as well as through its direct sales and service organizations. Hurco Companies, Inc. was incorporated in 1968 and is headquartered in Indianapolis, Indiana.

About Timken

The Timken Company designs, manufactures, and sells engineered bearings and industrial motion products, and related services in the United States and internationally. The company's Engineered Bearings segment provides various bearing products, including tapered, spherical, and cylindrical roller bearings; plain bearings, metal-polymer bearings, and rod end bearings; radial, angular, and precision ball bearings; thrust and specialty ball bearings; journal bearings; and housed or mounted bearings. This segment serves wind energy, agriculture, construction, food and beverage, metals and mining, automotive and truck, aerospace, rail, and other industries under the Timken, GGB, and Fafnir brands. Its Industrial Motion segment offers a portfolio of engineered products comprising industrial drives, automatic lubrication systems, linear motion products and systems, chains, belts, seals, couplings, filtration systems, and industrial clutches and brakes. It also provides industrial drivetrain and bearing repairing services. This segment serves a range of industries, such as solar energy, automation, construction, agriculture and turf, passenger rail, marine, aerospace, packaging and logistics, medical, and others under the Philadelphia Gear, Cone Drive, Rollon, Nadella, Groeneveld, BEKA, Diamond, Drives, Timken Belts, Spinea, Des-Case, Lagersmit, Lovejoy, and PT Tech brands. The Timken Company was founded in 1899 and is headquartered in North Canton, Ohio.