Decker Manufacturing (OTCMKTS:DMFG) & Timken (NYSE:TKR) Critical Contrast

Decker Manufacturing (OTCMKTS:DMFG) and Timken (NYSE:TKR) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Decker Manufacturing and Timken, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Decker Manufacturing	0	0	0	0	N/A
Timken	0	4	4	0	2.50

Timken has a consensus price target of $91.56, indicating a potential upside of 26.28%. Given Timken’s higher possible upside, analysts plainly believe Timken is more favorable than Decker Manufacturing.

Insider and Institutional Ownership

84.6% of Timken shares are held by institutional investors. 9.9% of Timken shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Decker Manufacturing and Timken’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Decker Manufacturing	N/A	N/A	N/A	N/A	N/A
Timken	$4.75 billion	1.08	$407.40 million	$5.90	12.29

Timken has higher revenue and earnings than Decker Manufacturing.

Profitability

This table compares Decker Manufacturing and Timken’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Decker Manufacturing	N/A	N/A	N/A
Timken	9.08%	20.87%	8.67%

Summary

Timken beats Decker Manufacturing on 8 of the 8 factors compared between the two stocks.

About Decker Manufacturing

Decker Manufacturing Corporation manufactures hex nuts, weld nuts, pipe plugs, and other industrial fasteners to the automotive, agricultural, farm implement, heavy duty equipment, and construction industries. The company offers weld fasteners, nut/washer assemblies, wheel nuts, locknuts, flange nuts, and pipe/drain plugs for passenger car and truck assembly applications, powertrains, transmissions, and chassis; hex, tower, guard rail, and culvert nuts for highways, signage, bridges, and building constructions; internal engine, hitch, and trailer fasteners; and seat belts and guard rails for safety market applications. It also provides shipping, technical assistance, product quality planning and production part approval processes. The company was formerly known as Decker Screw Products Company and changed its names to Decker Manufacturing Corporation in 1945. Decker Manufacturing Corporation was founded in 1927 and is based in Albion, Michigan.

About Timken

The Timken Company designs, manufactures, and manages engineered bearings and industrial motion products worldwide. It operates in two segments, Mobile Industries and Process Industries. The Mobile Industries segment offers a portfolio of bearings, seals, and lubrication devices and systems, as well as industrial motion components, engineered chains, augers, belts, couplings, clutches, 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 include bearings, turbine engine components, gears, and housings. This segment sells its 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 provides industrial bearings and assemblies; industrial motion components, such as gears and gearboxes; and linear motion products, couplings, seals, lubricants, chains, belts, and related products and services to OEMs and end users in various industries. It also offers aftermarket sales and service needs through a network of authorized industrial distributors; and repair and service for bearings and gearboxes, as well as electric motor rewind, repair, and services to end-users. The company offers its products under the Timken, Philadelphia Gear, GGB, Drives, Cone Drive, Rollon, Lovejoy, Diamond, BEKA, Spinea, and Groeneveld brands. The Timken Company was founded in 1899 and is headquartered in North Canton, Ohio.