The Timken (TKR) and Fairmount Santrol (FMSA) Head-To-Head Contrast

The Timken (NYSE: TKR) and Fairmount Santrol (NYSE:FMSA) are both industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.

Dividends

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The Timken pays an annual dividend of $1.08 per share and has a dividend yield of 2.4%. Fairmount Santrol does not pay a dividend. The Timken pays out 41.1% of its earnings in the form of a dividend. The Timken has raised its dividend for 4 consecutive years.

Profitability

This table compares The Timken and Fairmount Santrol’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The Timken 6.77% 14.55% 6.47%
Fairmount Santrol 5.60% 20.31% 4.52%

Risk & Volatility

The Timken has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Fairmount Santrol has a beta of 2.2, suggesting that its share price is 120% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for The Timken and Fairmount Santrol, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Timken 0 1 3 0 2.75
Fairmount Santrol 1 10 10 0 2.43

The Timken currently has a consensus price target of $51.00, indicating a potential upside of 11.84%. Fairmount Santrol has a consensus price target of $5.95, indicating a potential upside of 39.93%. Given Fairmount Santrol’s higher possible upside, analysts plainly believe Fairmount Santrol is more favorable than The Timken.

Institutional and Insider Ownership

79.5% of The Timken shares are owned by institutional investors. Comparatively, 74.7% of Fairmount Santrol shares are owned by institutional investors. 11.2% of The Timken shares are owned by company insiders. Comparatively, 9.8% of Fairmount Santrol shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares The Timken and Fairmount Santrol’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The Timken $3.00 billion 1.18 $203.40 million $2.63 17.34
Fairmount Santrol $959.79 million 0.99 $53.78 million $0.24 17.71

The Timken has higher revenue and earnings than Fairmount Santrol. The Timken is trading at a lower price-to-earnings ratio than Fairmount Santrol, indicating that it is currently the more affordable of the two stocks.

Summary

The Timken beats Fairmount Santrol on 12 of the 17 factors compared between the two stocks.

The Timken Company Profile

The Timken Company engineers, manufactures, and markets bearings, transmissions, gearboxes, belts, chains, lubrication systems, couplings, industrial clutches and brakes, and related products worldwide. It operates through two segments, Mobile Industries and Process Industries. The Mobile Industries segment offers a portfolio of bearings, seals, lubrication devices, and systems, as well as power transmission components, engineered chains, augers, belts, couplings, clutches and brakes, and related products and maintenance services to original equipment manufacturers (OEMs) and end users of off-highway equipment for the agricultural, construction, mining, outdoor power equipment, and power sports markets; and on-highway vehicles, including passenger cars, light trucks, and medium- and heavy-duty trucks, as well as rail cars and locomotives. It also provides power transmission systems and flight-critical components for civil and military aircraft, which comprise bearings, helicopter transmission systems, rotor-head assemblies, turbine engine components, gears, and housings. This segment sells it parts through a network of authorized automotive and heavy-truck distributors to individual end users, equipment owners, operators, and maintenance shops. The Process Industries segment supplies industrial bearings and assemblies; power transmission components, including gears and gearboxes; and couplings, seals, lubricants, chains, belts, and related products and services to OEMs and end-users in various industries. It also supports aftermarket sales and service needs through its network of authorized industrial distributors; and offers repair and service for bearings and gearboxes, as well as electric motor rewind, repair, and services to end users. The Timken Company was founded in 1899 and is headquartered in North Canton, Ohio.

Fairmount Santrol Company Profile

Fairmount Santrol Holdings Inc. is a provider of sand-based proppant solutions. The Company operates through two segments: Proppant Solutions, and Industrial & Recreational (I&R) Products. Its Proppant Solutions segment provides sand-based proppants for use in hydraulic fracturing operations throughout the United States and Canada, Argentina, Mexico, China, northern Europe and the United Arab Emirates. Its I&R segment provides raw, coated, and custom blended sands to the foundry, building products, glass, turf and landscape, and filtration industries in North America. Its asset base includes approximately 800 million tons of proven and probable mineral reserves. As of March 2017, the Company had 10 sand processing facilities with 16.8 million tons of annual sand processing capacity. Its coating facilities include operations in Mexico, Denmark and China, through which it serves international oil and gas markets.

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