Contrasting Sensata Technologies (ST) and Its Peers

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

Volatility and Risk

Sensata Technologies has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Sensata Technologies’ peers have a beta of -20.43, meaning that their average stock price is 2,143% less volatile than the S&P 500.

Institutional and Insider Ownership

99.4% of Sensata Technologies shares are held by institutional investors. Comparatively, 37.3% of shares of all “Electrical Equipment” companies are held by institutional investors. 0.7% of Sensata Technologies 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Sensata Technologies and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sensata Technologies	1	4	5	0	2.40
Sensata Technologies Competitors	2297	5180	7231	439	2.38

Sensata Technologies currently has a consensus target price of $50.33, indicating a potential upside of 24.85%. As a group, “Electrical Equipment” companies have a potential upside of 48.21%. Given Sensata Technologies’ peers higher possible upside, analysts plainly believe Sensata Technologies has less favorable growth aspects than its peers.

Dividends

Sensata Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 1.2%. Sensata Technologies pays out 19.2% 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.

Valuation & Earnings

This table compares Sensata Technologies and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sensata Technologies	$3.70 billion	$31.30 million	16.13
Sensata Technologies Competitors	$2.38 billion	$148.52 million	21.43

Sensata Technologies has higher revenue, but lower earnings than its peers. Sensata Technologies is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Sensata Technologies and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sensata Technologies	9.52%	19.38%	8.43%
Sensata Technologies Competitors	-380.43%	-44.08%	-7.39%

Summary

Sensata Technologies beats its peers on 9 of the 15 factors compared.

About Sensata Technologies

Sensata Technologies is a global developer and manufacturer of sensors, electrical protection components and other sensing solutions. Its products help customers monitor and control pressure, temperature, position, speed and other operating conditions, as well as protect electrical systems. The company serves customers in markets including automotive, heavy vehicles, industrial equipment, aerospace, heating and air conditioning, and appliances. Its offerings are used in applications ranging from vehicle safety and electrification to industrial automation and equipment protection.