Comparing American Superconductor Corporation (AMSC) & Regal Beloit Corporation (RBC)

American Superconductor Corporation (NASDAQ: AMSC) and Regal Beloit Corporation (NYSE:RBC) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

35.2% of American Superconductor Corporation shares are owned by institutional investors. Comparatively, 92.2% of Regal Beloit Corporation shares are owned by institutional investors. 2.6% of American Superconductor Corporation shares are owned by company insiders. Comparatively, 2.2% of Regal Beloit Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for American Superconductor Corporation and Regal Beloit Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Superconductor Corporation 0 1 5 0 2.83
Regal Beloit Corporation 0 6 3 0 2.33

American Superconductor Corporation currently has a consensus price target of $7.33, suggesting a potential upside of 91.47%. Regal Beloit Corporation has a consensus price target of $81.40, suggesting a potential upside of 5.10%. Given American Superconductor Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe American Superconductor Corporation is more favorable than Regal Beloit Corporation.

Profitability

This table compares American Superconductor Corporation and Regal Beloit Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Superconductor Corporation -45.60% -54.39% -32.07%
Regal Beloit Corporation 6.29% 9.88% 4.79%

Volatility & Risk

American Superconductor Corporation has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Regal Beloit Corporation has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.

Dividends

Regal Beloit Corporation pays an annual dividend of $1.04 per share and has a dividend yield of 1.3%. American Superconductor Corporation does not pay a dividend. Regal Beloit Corporation pays out 23.0% of its earnings in the form of a dividend. Regal Beloit Corporation has raised its dividend for 7 consecutive years.

Valuation and Earnings

This table compares American Superconductor Corporation and Regal Beloit Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Superconductor Corporation $70.77 million 1.04 -$21.56 million ($2.14) -1.79
Regal Beloit Corporation $3.25 billion 1.06 $469.10 million $4.53 17.10

Regal Beloit Corporation has higher revenue and earnings than American Superconductor Corporation. American Superconductor Corporation is trading at a lower price-to-earnings ratio than Regal Beloit Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Regal Beloit Corporation beats American Superconductor Corporation on 11 of the 16 factors compared between the two stocks.

American Superconductor Corporation Company Profile

American Superconductor Corporation (AMSC) is a provider of megawatt-scale solutions. The Company operates through two segments: Wind and Grid. Through the Company’s Windtec Solutions brand, the Wind business segment enables manufacturers to field wind turbines. Through the Company’s Gridtec Solutions, the Grid business segment enables electric utilities and renewable energy project developers to connect, transmit and distribute power. AMSC supplies power electronics and control systems, licenses its engineered wind turbine designs and provides customer support services to wind turbine manufacturers. The Company provides a range of power electronics and software-based control systems. AMSC provides transmission planning services that enable it to identify power grid congestion and other risks. The Company also sells grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems.

Regal Beloit Corporation Company Profile

Regal Beloit Corporation is a manufacturer of electric motors, electrical motion controls, power generation and power transmission products. The Company operates through three segments: the Commercial and Industrial Systems segment, with its principal line of business in medium and large electric motors, power generation products, high-performance drives and controls and capacitors; the Climate Solutions segment, with its principal line of business in small motors, controls and air moving products, and the Power Transmission Solutions segment, with its principal line of business in power transmission gearing, hydraulic pump drives, open gearing and specialty mechanical products which control motion and torque. It sells its products directly to original equipment manufacturers (OEMs), distributors and end users. It operates distribution facilities in Plainfield, Indiana; McAllen, Texas; LaVergne, Tennessee, and Florence, Kentucky.

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