Critical Analysis: Aggreko (ARGKF) versus Its Rivals

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aggreko	N/A	N/A	N/A
Aggreko Competitors	0.68%	-34.57%	3.12%

Risk and Volatility

Aggreko has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Aggreko’s competitors have a beta of 1.28, indicating that their average share price is 28% more volatile than the S&P 500.

Valuation and Earnings

This table compares Aggreko and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Aggreko	$1.75 billion	-$142.52 million	42.54
Aggreko Competitors	$6.49 billion	$363.90 million	23.96

Aggreko’s competitors have higher revenue and earnings than Aggreko. Aggreko 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.

Insider & Institutional Ownership

50.9% of shares of all “Trading Companies & Distributors” companies are held by institutional investors. 16.9% of shares of all “Trading Companies & Distributors” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Aggreko competitors beat Aggreko on 6 of the 9 factors compared.

About Aggreko

Aggreko Plc engages in the provision of mobile modular power, temperature control and energy services. It operates through the following segments: Rental Solutions, Power Solutions and Power Solutions Utility. The Rental Solutions segment refers to the transactional business serving a range of sectors in developed markets by providing power, heating, and cooling to a number of customer types who need it quickly and typically for a short period of time. The Power Solutions segment operates in emerging markets which serve both industrial and utility customers with power requirements. The Power Solutions Utility segment delivers longer-term projects providing power to national utility customers. The company was founded in 1962 and is headquartered in Glasgow, the United Kingdom.