Contrasting WEG (WEGZY) & Its Rivals

WEG (OTCMKTS:WEGZY) is one of 436 public companies in the “Machinery” industry, but how does it weigh in compared to its peers? We will compare WEG to related businesses based on the strength of its dividends, profitability, risk, earnings, institutional ownership, valuation and analyst recommendations.

Insider & Institutional Ownership

51.7% of shares of all “Machinery” companies are held by institutional investors. 14.2% of shares of all “Machinery” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for WEG and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WEG	0	1	2	0	2.67
WEG Competitors	4199	14702	18203	806	2.41

As a group, “Machinery” companies have a potential upside of 35.94%. Given WEG’s peers higher possible upside, analysts clearly believe WEG has less favorable growth aspects than its peers.

Dividends

WEG pays an annual dividend of $0.05 per share and has a dividend yield of 0.5%. WEG pays out 17.2% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 24.6% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares WEG and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
WEG	$7.31 billion	$1.14 billion	31.62
WEG Competitors	$4.78 billion	$362.53 million	4.29

WEG has higher revenue and earnings than its peers. WEG 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 WEG and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WEG	15.39%	32.99%	14.37%
WEG Competitors	-1,044.45%	-14.94%	0.58%

Summary

WEG beats its peers on 9 of the 14 factors compared.

About WEG

WEG S.A. engages in the production and sale of capital goods in Brazil and internationally. The company offers electric motors, generators, and transformers; gear units and geared motors; hydraulic and steam turbines; frequency converters; motor starters and maneuver devices; control and protection of electric circuits for industrial automation; power sockets and switches; and electric traction solutions for heavy vehicles, SUV vehicles, locomotives, and sea transportation capital goods. It also provides solutions for the generation of renewable and distributed energy through hydro, thermal, biomass, wind, and solar energy power plants; solutions for industry; UPSs and alternators for groups of generators; conventional and movable electric substations; industrial electrical and electronic systems; industrial paint and varnish; and paints for automotive repainting. WEG S.A. was founded in 1961 and is headquartered in Jaraguá do Sul, Brazil.