Critical Survey: GreenPower Motor (NASDAQ:GP) & Timken (NYSE:TKR)
by Mitch Edgeman · The Markets DailyTimken (NYSE:TKR – Get Free Report) and GreenPower Motor (NASDAQ:GP – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Valuation and Earnings
This table compares Timken and GreenPower Motor”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Timken | $4.58 billion | 1.77 | $288.40 million | $3.69 | 31.78 |
| GreenPower Motor | $16.39 million | 0.26 | -$5.48 million | ($0.68) | -0.86 |
Timken has higher revenue and earnings than GreenPower Motor. GreenPower Motor is trading at a lower price-to-earnings ratio than Timken, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Timken has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, GreenPower Motor has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for Timken and GreenPower Motor, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Timken | 0 | 3 | 7 | 0 | 2.70 |
| GreenPower Motor | 1 | 1 | 0 | 0 | 1.50 |
Timken presently has a consensus target price of $145.50, suggesting a potential upside of 24.08%. Given Timken’s stronger consensus rating and higher probable upside, research analysts plainly believe Timken is more favorable than GreenPower Motor.
Insider and Institutional Ownership
89.1% of Timken shares are held by institutional investors. Comparatively, 1.7% of GreenPower Motor shares are held by institutional investors. 8.1% of Timken shares are held by company insiders. Comparatively, 28.1% of GreenPower Motor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Timken and GreenPower Motor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Timken | 5.43% | 12.63% | 6.21% |
| GreenPower Motor | -24.28% | N/A | -7.44% |
Summary
Timken beats GreenPower Motor on 12 of the 14 factors compared between the two stocks.
About Timken
The Timken Company designs, manufactures, and sells engineered bearings and industrial motion products, and related services in the United States and internationally. The company's Engineered Bearings segment provides various bearing products, including tapered, spherical, and cylindrical roller bearings; plain bearings, metal-polymer bearings, and rod end bearings; radial, angular, and precision ball bearings; thrust and specialty ball bearings; journal bearings; and housed or mounted bearings. This segment serves wind energy, agriculture, construction, food and beverage, metals and mining, automotive and truck, aerospace, rail, and other industries under the Timken, GGB, and Fafnir brands. Its Industrial Motion segment offers a portfolio of engineered products comprising industrial drives, automatic lubrication systems, linear motion products and systems, chains, belts, seals, couplings, filtration systems, and industrial clutches and brakes. It also provides industrial drivetrain and bearing repairing services. This segment serves a range of industries, such as solar energy, automation, construction, agriculture and turf, passenger rail, marine, aerospace, packaging and logistics, medical, and others under the Philadelphia Gear, Cone Drive, Rollon, Nadella, Groeneveld, BEKA, Diamond, Drives, Timken Belts, Spinea, Des-Case, Lagersmit, Lovejoy, and PT Tech brands. The Timken Company was founded in 1899 and is headquartered in North Canton, Ohio.
About GreenPower Motor
GreenPower Motor Company Inc. designs, manufactures, and distributes electric vehicles for commercial markets in the United States and Canada. The company offers commercial vehicles for delivery, public transit, schools, vanpools, micro-transit, shuttles, and other; and passenger, student, low floor transit, and cargo transportation. It leases its vehicles to customers. GreenPower Motor Company Inc. was founded in 2010 and is headquartered in Vancouver, Canada.