Reviewing NN (NNBR) and The Competition

NN (NASDAQ: NNBR) is one of 4 publicly-traded companies in the “Ball & roller bearings” industry, but how does it weigh in compared to its competitors? We will compare NN to related businesses based on the strength of its valuation, dividends, earnings, institutional ownership, risk, profitability and analyst recommendations.

Profitability

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This table compares NN and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NN 4.87% 10.98% 2.97%
NN Competitors 7.80% 14.22% 6.06%

Dividends

NN pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. NN pays out 18.1% of its earnings in the form of a dividend. As a group, “Ball & roller bearings” companies pay a dividend yield of 2.2% and pay out 34.9% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and target prices for NN and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NN 0 2 2 0 2.50
NN Competitors 23 109 124 0 2.39

NN currently has a consensus target price of $33.67, indicating a potential upside of 53.03%. As a group, “Ball & roller bearings” companies have a potential upside of 13.18%. Given NN’s stronger consensus rating and higher possible upside, analysts plainly believe NN is more favorable than its competitors.

Institutional and Insider Ownership

95.8% of NN shares are held by institutional investors. Comparatively, 91.6% of shares of all “Ball & roller bearings” companies are held by institutional investors. 2.8% of NN shares are held by company insiders. Comparatively, 5.9% of shares of all “Ball & roller bearings” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

NN has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, NN’s competitors have a beta of 1.05, suggesting that their average stock price is 4% more volatile than the S&P 500.

Valuation and Earnings

This table compares NN and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
NN $619.79 million $163.05 million 14.19
NN Competitors $3.34 billion $269.71 million 21.36

NN’s competitors have higher revenue and earnings than NN. NN is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

NN competitors beat NN on 9 of the 14 factors compared.

About NN

NN, Inc. is a diversified industrial company and a global manufacturer of high precision components and assemblies to a range of markets on a global basis. The Company’s operating segments include: the Precision Engineered Products Group and the Autocam Precision Components Group. Precision Engineered Products Group combines materials science capability with engineering and production solutions to design and manufacture a range of high-precision metal and plastic components, assemblies and finished devices for the medical, electrical, automotive and aerospace end markets. Autocam Precision Components Group manufactures highly engineered, difficult-to-manufacture precision metal components and subassemblies for the automotive, heating, ventilating and air conditioning (HVAC), fluid power and diesel engine end markets.

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