Fanuc (OTCMKTS:FANUY) versus RBC Bearings (NYSE:RBC) Financial Analysis

RBC Bearings (NYSE:RBC) and Fanuc (OTCMKTS:FANUY) are both large-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Profitability

This table compares RBC Bearings and Fanuc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RBC Bearings	16.40%	12.06%	7.78%
Fanuc	20.11%	9.60%	8.65%

Earnings & Valuation

This table compares RBC Bearings and Fanuc”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RBC Bearings	$1.87 billion	8.60	$287.60 million	$10.12	50.21
Fanuc	$5.70 billion	6.59	$1.10 billion	$0.62	30.84

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

Insider and Institutional Ownership

1.5% of Fanuc shares are held by institutional investors. 1.8% of RBC Bearings shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for RBC Bearings and Fanuc, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RBC Bearings	0	2	7	1	2.90
Fanuc	0	2	0	1	2.67

RBC Bearings presently has a consensus price target of $615.44, indicating a potential upside of 21.12%. Given RBC Bearings’ stronger consensus rating and higher probable upside, equities research analysts clearly believe RBC Bearings is more favorable than Fanuc.

Volatility & Risk

RBC Bearings has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Fanuc has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Summary

RBC Bearings beats Fanuc on 9 of the 14 factors compared between the two stocks.

About RBC Bearings

RBC Bearings Incorporated manufactures and markets engineered precision bearings, components, and systems in the United States and internationally. It operates through two segments, Aerospace/Defense and Industrial. The company produces plain bearings with self-lubricating or metal-to-metal designs, including rod end bearings, spherical plain bearings, and journal bearings; roller bearings, such as tapered roller bearings, needle roller bearings, and needle bearing track rollers and cam followers, which are anti-friction products that are used in industrial applications and military aircraft platforms; and ball bearings include high precision aerospace, airframe control, thin section, and industrial ball bearings that utilize high precision ball elements to reduce friction in high-speed applications. In addition, it offers mounted bearing products include mounted ball bearings, mounted roller bearings, and mounted plain bearings; and enclosed gearing product lines, including quantis gearmotor, torque arm, tigear, magnagear and maxum, and controlled start transmission. Further, the company's power transmission components include mechanical drive components, couplings, and conveyor components; engineered hydraulics and valves for aircraft and submarine applications, and aerospace and defense aftermarket services; fasteners; precision mechanical components, which are used in various general industrial applications; and machine tool collets that are used for holding circulars or rod-like pieces. It serves automotive, tool holding, agricultural and semiconductor machinery, commercial and defense aerospace, ground defense, construction and mining, oil and natural resource extraction, heavy truck, marine, rail and train, material handling, food and beverage, packaging and canning, wind, and general industrial markets through its direct sales force, and a network of industrial and aerospace distributors. The company was founded in 1919 and is based in Oxford, Connecticut.

About Fanuc

FANUC Corporation provides factory automation products in Japan, the Americas, Europe, China, the rest of Asia, and internationally. The company offers CNC series products, servo motors, lasers, robots, compact machining centers, electric injection molding machines, wire electrical discharge machines, and ultra-precision machines. It also provides FANUC intelligent edge link and drive system, an open platform for the manufacturing industry. FANUC Corporation was incorporated in 1950 and is headquartered in Yamanashi, Japan.