NTN vs Timken Which Is Superior?

NTN and Timken are two renowned companies that specialize in manufacturing bearings, a crucial component in various industries such as automotive, aerospace, and industrial machinery. Both companies have a long-standing reputation for producing high-quality products, leading to strong performances in the stock market. Investors often compare NTN and Timken stocks to determine which one offers better growth potential, profitability, and overall value. By analyzing their financial reports, market trends, and industry advancements, investors can make informed decisions on where to allocate their investment capital.

NTN or Timken?

When comparing NTN and Timken, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between NTN and Timken.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. NTN has a dividend yield of 4.28%, while Timken has a dividend yield of 1.78%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NTN reports a 5-year dividend growth of 0.00% year and a payout ratio of 123.11%. On the other hand, Timken reports a 5-year dividend growth of 3.21% year and a payout ratio of 28.04%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with NTN P/E ratio at 30.16 and Timken's P/E ratio at 15.66. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NTN P/B ratio is 0.52 while Timken's P/B ratio is 1.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NTN has seen a 5-year revenue growth of 0.14%, while Timken's is 0.44%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NTN's ROE at 1.67% and Timken's ROE at 12.46%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥242.80 for NTN and $75.66 for Timken. Over the past year, NTN's prices ranged from ¥230.10 to ¥338.40, with a yearly change of 47.07%. Timken's prices fluctuated between $72.35 and $94.71, with a yearly change of 30.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.