Head to Head Analysis: Timken (NYSE:TKR) and Exro Technologies (OTCMKTS:EXROF)

Exro Technologies (OTCMKTS:EXROF) and Timken (NYSE:TKR) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Exro Technologies and Timken, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exro Technologies	2	3	0	0	1.60
Timken	0	7	4	0	2.36

Timken has a consensus price target of $79.82, indicating a potential upside of 0.84%. Given Timken’s stronger consensus rating and higher probable upside, analysts plainly believe Timken is more favorable than Exro Technologies.

Insider & Institutional Ownership

89.1% of Timken shares are owned by institutional investors. 8.7% of Timken shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Exro Technologies and Timken’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exro Technologies	-1,420.35%	-109.03%	-61.37%
Timken	6.86%	11.78%	5.52%

Risk & Volatility

Exro Technologies has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Timken has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Earnings and Valuation

This table compares Exro Technologies and Timken”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exro Technologies	$16.84 million	0.59	-$210.86 million	($0.47)	-0.04
Timken	$4.57 billion	1.21	$352.70 million	$4.40	17.99

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

Summary

Timken beats Exro Technologies on 14 of the 14 factors compared between the two stocks.

About Exro Technologies

Exro Technologies Inc. focuses on developing generation power-control electronics in Canada. The company offers Exro Coil Driver, which allows the motor to switch between different operational profiles in real-time, as well as have multiple gears for scooters, electric bikes, recreational, light electric cars, motorcycles, fleet vans, electric buses, passenger vehicles, long-haul trucks, and industrial vehicles markets; and Exro Cell Driver, a stationary energy storage system for commercial and industrial energy storage applications. It also provides electric vehicle consulting and engineering services. The company was incorporated in 2014 and is headquartered in Calgary, Canada.

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.