Contrasting BIO-key International (NASDAQ:BKYI) and Timken (NYSE:TKR)

Timken (NYSE:TKRGet Free Report) and BIO-key International (NASDAQ:BKYIGet Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Risk and Volatility

Timken has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, BIO-key International has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Timken and BIO-key International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Timken 0 7 4 0 2.36
BIO-key International 0 0 0 0 0.00

Timken presently has a consensus target price of $80.73, indicating a potential upside of 5.20%. Given Timken’s stronger consensus rating and higher possible upside, equities analysts plainly believe Timken is more favorable than BIO-key International.

Valuation & Earnings

This table compares Timken and BIO-key International”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Timken $4.57 billion 1.17 $352.70 million $4.40 17.44
BIO-key International $6.93 million 0.77 -$4.30 million ($1.28) -0.60

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

Profitability

This table compares Timken and BIO-key International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Timken 6.86% 11.78% 5.52%
BIO-key International -60.92% -92.10% -45.86%

Institutional and Insider Ownership

89.1% of Timken shares are owned by institutional investors. Comparatively, 26.5% of BIO-key International shares are owned by institutional investors. 8.4% of Timken shares are owned by company insiders. Comparatively, 3.7% of BIO-key International shares are owned 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.

Summary

Timken beats BIO-key International on 14 of the 14 factors compared between the two stocks.

About Timken

(Get Free Report)

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 BIO-key International

(Get Free Report)

BIO-key International, Inc. develops and markets fingerprint identification biometric technology and software solutions, and enterprise-ready identity access management solutions for commercial, government, and education customers in the United States and internationally. The company offers BIO-key PortalGuard and PortalGuard IDaaS solutions, a customer-controlled and neutral-by-design cloud-based identity platform that allows customers to integrate with any cloud or on-premises SaaS application, as well as windows device authentication through IAM platform. Its solutions enable its customers to secure their workforces and student populations; and make their partner networks more collaborative. In addition, it provides BIO-key VST and WEB-key products; and Civil and Large-Scale ID Infrastructure solutions that develops finger-based biometric technology. Further, it offers finger scanners for enterprise and consumer markets under SideSwipe, EcoID, and SidePass brand names. The company was formerly known as SAC Technologies and changed its name to BIO-key International, Inc. in 2002. BIO-key International, Inc. was founded in 1993 and is headquartered in Wall, New Jersey.

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