AMETEK (AME) & Its Rivals Financial Analysis

AMETEK (NYSE:AME) is one of 377 publicly-traded companies in the “Electronic Equipment, Instruments & Components” industry, but how does it compare to its peers? We will compare AMETEK to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, valuation, risk, dividends and earnings.

Volatility and Risk

AMETEK has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, AMETEK’s peers have a beta of -0.30, suggesting that their average stock price is 130% less volatile than the S&P 500.

Dividends

AMETEK pays an annual dividend of $1.36 per share and has a dividend yield of 0.6%. AMETEK pays out 19.2% of its earnings in the form of a dividend. As a group, “Electronic Equipment, Instruments & Components” companies pay a dividend yield of 1.9% and pay out 79.6% of their earnings in the form of a dividend. AMETEK has raised its dividend for 6 consecutive years.

Valuation & Earnings

This table compares AMETEK and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AMETEK	$7.40 billion	$1.48 billion	34.08
AMETEK Competitors	$4.16 billion	$172.92 million	4.90

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AMETEK	19.91%	17.12%	10.68%
AMETEK Competitors	-141.16%	-27.05%	-7.22%

Institutional and Insider Ownership

87.4% of AMETEK shares are held by institutional investors. Comparatively, 43.5% of shares of all “Electronic Equipment, Instruments & Components” companies are held by institutional investors. 0.5% of AMETEK shares are held by insiders. Comparatively, 16.1% of shares of all “Electronic Equipment, Instruments & Components” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for AMETEK and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMETEK	0	5	13	1	2.79
AMETEK Competitors	2055	7629	10462	667	2.47

AMETEK currently has a consensus target price of $278.06, suggesting a potential upside of 15.10%. As a group, “Electronic Equipment, Instruments & Components” companies have a potential upside of 32.69%. Given AMETEK’s peers higher possible upside, analysts plainly believe AMETEK has less favorable growth aspects than its peers.

Summary

AMETEK beats its peers on 12 of the 15 factors compared.

AMETEK Company Profile

AMETEK, Inc. is a global manufacturer of electronic instruments and electromechanical products. Its businesses serve a range of markets, including aerospace, energy, industrial manufacturing, medical, and transportation. The company’s products include analytical and process instruments, monitoring and measurement systems, aerospace components, precision motors and pumps, and engineered materials. AMETEK organizes its operations into two groups: Electronic Instruments and Electromechanical. Founded in 1930, AMETEK serves customers around the world through manufacturing facilities, sales offices, and service operations in multiple countries.