Comparing Regal Rexnord (NYSE:RRX) & Symbotic (NASDAQ:SYM)

Regal Rexnord (NYSE:RRXGet Free Report) and Symbotic (NASDAQ:SYMGet Free Report) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Volatility & Risk

Regal Rexnord has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Symbotic has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500.

Profitability

This table compares Regal Rexnord and Symbotic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regal Rexnord -0.48% 9.42% 3.86%
Symbotic -1.27% 5.27% 0.65%

Earnings and Valuation

This table compares Regal Rexnord and Symbotic’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Regal Rexnord $6.25 billion 1.59 -$57.40 million ($0.48) -311.54
Symbotic $1.18 billion 19.66 -$23.87 million ($0.24) -164.87

Symbotic has lower revenue, but higher earnings than Regal Rexnord. Regal Rexnord is trading at a lower price-to-earnings ratio than Symbotic, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

99.7% of Regal Rexnord shares are held by institutional investors. 0.8% of Regal Rexnord shares are held by company insiders. Comparatively, 38.3% of Symbotic shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Regal Rexnord and Symbotic, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regal Rexnord 0 0 5 0 3.00
Symbotic 0 3 11 0 2.79

Regal Rexnord currently has a consensus price target of $195.60, suggesting a potential upside of 30.80%. Symbotic has a consensus price target of $55.69, suggesting a potential upside of 40.74%. Given Symbotic’s higher probable upside, analysts clearly believe Symbotic is more favorable than Regal Rexnord.

Summary

Symbotic beats Regal Rexnord on 8 of the 14 factors compared between the two stocks.

About Regal Rexnord

(Get Free Report)

Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets. The Power Efficiency Solutions segment offers AC and DC motors, electronic variable speed controls, and blowers for residential, commercial HVAC, water heaters, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, agriculture, conveying, and general commercial equipment markets. The Automation and Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, rotary precision motion solutions, high-efficiency miniature motors, motion controls, automation transfer switches, and switchgear for industrial applications and automation systems for material handling, aerospace and defense, factory automation, data centers, medical device, packaging, printing, semiconductor, robotic, industrial power tool, mobile off-highway, food and beverage processing, and other applications. The Industrial Systems segment offers integral motors, alternators, and aftermarket parts and kits for agriculture, marine, mining, oil and gas, food and beverage, data centers, prime and standby power, and general industrial equipment markets. It sells its products directly to original equipment manufacturers, distributors, and end-users. The company was formerly known as Regal Beloit Corporation. The company was founded in 1955 and is based in Milwaukee, Wisconsin.

About Symbotic

(Get Free Report)

Symbotic Inc., an automation technology company, engages in developing technologies to improve operating efficiencies in modern warehouses. The company automates the processing of pallets and cases in large warehouses or distribution centers for retail companies. Its systems enhance operations at the front end of the supply chain. The company was founded in 2006 and is headquartered in Wilmington, Massachusetts.

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