Contrasting Atmus Filtration Technologies (NYSE:ATMU) & RBC Bearings (NYSE:RBC)

RBC Bearings (NYSE:RBC) and Atmus Filtration Technologies (NYSE:ATMU) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Profitability

This table compares RBC Bearings and Atmus Filtration Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RBC Bearings	17.51%	12.50%	8.26%
Atmus Filtration Technologies	11.26%	55.47%	13.79%

Insider and Institutional Ownership

32.7% of Atmus Filtration Technologies shares are owned by institutional investors. 1.8% of RBC Bearings shares are owned by company insiders. Comparatively, 0.4% of Atmus Filtration Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares RBC Bearings and Atmus Filtration Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RBC Bearings	$1.87 billion	8.27	$287.60 million	$11.18	43.74
Atmus Filtration Technologies	$1.76 billion	2.57	$207.40 million	$2.69	20.76

RBC Bearings has higher revenue and earnings than Atmus Filtration Technologies. Atmus Filtration Technologies is trading at a lower price-to-earnings ratio than RBC Bearings, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for RBC Bearings and Atmus Filtration Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RBC Bearings	0	2	6	1	2.89
Atmus Filtration Technologies	0	3	3	0	2.50

RBC Bearings presently has a consensus price target of $623.38, indicating a potential upside of 27.48%. Atmus Filtration Technologies has a consensus price target of $59.67, indicating a potential upside of 6.85%. Given RBC Bearings’ stronger consensus rating and higher probable upside, equities analysts clearly believe RBC Bearings is more favorable than Atmus Filtration Technologies.

Volatility and Risk

RBC Bearings has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Atmus Filtration Technologies has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Summary

RBC Bearings beats Atmus Filtration Technologies on 12 of the 15 factors compared between the two stocks.

About RBC Bearings

RBC Bearings Incorporated designs and manufactures precision bearings and other engineered components for aerospace, defense and industrial applications. Its products include plain, roller and ball bearings, spherical bearings, rod ends and related motion-control components. The company’s products are used in aircraft and defense systems as well as equipment across industries such as construction, energy, transportation and automation. RBC Bearings serves customers worldwide. The company traces its roots to 1919 and has grown through product development and acquisitions.

About Atmus Filtration Technologies

Atmus Filtration Technologies designs, manufactures and distributes filtration products and solutions for equipment and engines. Its offerings include air, fuel, lubricating-oil, hydraulic and coolant filtration, as well as crankcase ventilation and emissions-related products. The company markets many of its products under the Fleetguard brand. Atmus serves customers in markets including on-highway transportation, agriculture, construction, mining, marine, power generation and industrial equipment.