Analyzing Emerson Electric (NYSE:EMR) and Fuji Electric (OTCMKTS:FELTY)

Emerson Electric (NYSE:EMR) and Fuji Electric (OTCMKTS:FELTY) are both large-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Dividends

Emerson Electric pays an annual dividend of $2.22 per share and has a dividend yield of 1.4%. Fuji Electric pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Emerson Electric pays out 48.6% of its earnings in the form of a dividend. Emerson Electric has raised its dividend for 68 consecutive years. Emerson Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Emerson Electric and Fuji Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Emerson Electric	13.83%	17.58%	8.50%
Fuji Electric	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Emerson Electric and Fuji Electric, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Emerson Electric	1	10	13	0	2.50
Fuji Electric	1	0	0	0	1.00

Emerson Electric presently has a consensus price target of $167.83, indicating a potential upside of 8.02%. Given Emerson Electric’s stronger consensus rating and higher probable upside, equities analysts clearly believe Emerson Electric is more favorable than Fuji Electric.

Valuation and Earnings

This table compares Emerson Electric and Fuji Electric”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Emerson Electric	$18.64 billion	4.67	$2.29 billion	$4.57	34.00
Fuji Electric	N/A	N/A	N/A	N/A	N/A

Emerson Electric has higher revenue and earnings than Fuji Electric.

Insider and Institutional Ownership

74.3% of Emerson Electric shares are held by institutional investors. 0.2% of Emerson Electric shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Emerson Electric beats Fuji Electric on 11 of the 12 factors compared between the two stocks.

About Emerson Electric

Emerson Electric Co., a technology and software company, provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. It operates in six segments: Final Control, Control Systems & Software, Measurement & Analytical, AspenTech, Discrete Automation, and Safety & Productivity. The Final Control segment provides control, isolation, shutoff, pressure relief, and pressure safety valves, actuators, and regulators for process and hybrid industries. The Measurement & Analytical segment offers intelligent instrumentation measuring the physical properties of liquids or gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame. The Discrete Automation segment offers solenoid and pneumatic valves, valve position indicators, pneumatic cylinders, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems, electrical distribution equipment, and materials joining solutions. The Safety & Productivity segment offers tools for professionals and homeowners; pipe-working tools, including pipe wrenches, pipe cutters, pipe threading and roll grooving equipment, battery hydraulic tools; electrical tools; and other professional tools. The Control Systems & Software segment provides distributed control systems, safety instrumented systems, SCADA systems, application software, digital twins, asset performance management, and cybersecurity. The Test & Measurement provides software-connected automated test and measurement systems. The AspenTech segment provides asset optimization software that enables industrial manufacturers to design, operate, and maintain operations for enhancing performance through a combination of decades of modeling, simulation, and optimization capabilities. The company was incorporated in 1890 and is headquartered in Saint Louis, Missouri.

About Fuji Electric

Fuji Electric Co., Ltd., together with its subsidiaries, develops power semiconductors and electronics solutions in Japan and internationally. It operates through Power Electronics Energy, Power Electronics Industry, Semiconductor, Power Generation, Food and Beverages Distribution, Others segments. The company also offers drivers and inverters including AC drivers, motors, and servo systems; semiconductors and photoconductors; power supply products, which includes uninterruptible power systems, solar inverters, data centers, rectifiers, and formers; sensors and measurements, such as instrumentation and radiation monitoring systems; and factory automation systems. In addition, it provides distribution and controls including LV and MV distributions, motor controls, and energy control equipment; transmission and distribution comprising oil-immersed transformers, shunt reactors, cast resin transformers, gas insulated switchgears, MV and LV switchgears and control centers, vacuum circuit breakers, and pure water vaporization cooling silicon rectifiers; and social infrastructure, which includes tunnel ventilation systems, marine environment protection systems, and electrical equipment for railcars. Further, the company offers thermal and geothermal power generation, nuclear power, and fuel cell; energy management including power system simulator; can and PET bottle beverage vending machine, coin mechanism, and bill validators; service and after sales services; and equipment upgrades. Fuji Electric Co., Ltd. was formerly known as Fuji Electric Holdings Co., Ltd. and changed its name to Fuji Electric Co., Ltd. in 2011. The company was incorporated in 1923 and is headquartered in Tokyo, Japan.