ESS Tech (NYSE:GWH) & Rockwell Automation (NYSE:ROK) Critical Review

Rockwell Automation (NYSE:ROK – Get Free Report) and ESS Tech (NYSE:GWH – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Valuation & Earnings

This table compares Rockwell Automation and ESS Tech”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rockwell Automation $8.34 billion 5.18 $869.00 million $12.55 30.99
ESS Tech $1.58 million 3.27 -$63.44 million ($2.93) -0.05

Rockwell Automation has higher revenue and earnings than ESS Tech. ESS Tech is trading at a lower price-to-earnings ratio than Rockwell Automation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Rockwell Automation and ESS Tech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rockwell Automation 13.39% 39.83% 12.97%
ESS Tech N/A -1,934.84% -156.40%

Volatility and Risk

Rockwell Automation has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, ESS Tech has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.

Insider and Institutional Ownership

75.7% of Rockwell Automation shares are held by institutional investors. Comparatively, 46.8% of ESS Tech shares are held by institutional investors. 0.8% of Rockwell Automation shares are held by company insiders. Comparatively, 0.7% of ESS Tech shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Rockwell Automation and ESS Tech, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rockwell Automation 0 13 9 0 2.41
ESS Tech 1 0 1 0 2.00

Rockwell Automation currently has a consensus price target of $471.33, suggesting a potential upside of 21.18%. ESS Tech has a consensus price target of $2.00, suggesting a potential upside of 1,176.32%. Given ESS Tech’s higher probable upside, analysts plainly believe ESS Tech is more favorable than Rockwell Automation.

Summary

Rockwell Automation beats ESS Tech on 13 of the 14 factors compared between the two stocks.

About Rockwell Automation

(Get Free Report)

Rockwell Automation, Inc. provides industrial automation and digital transformation solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through three segments, Intelligent Devices, Software & Control, and Lifecycle Services. Its solutions include hardware and software products and services. The Intelligent Devices segment offers drives, motion, safety, sensing, industrial components, and configured-to-order products. The Software & Control segment provides control and visualization software and hardware, information software, and network and security infrastructure solutions. The Lifecycle Services segment provides consulting, professional services and solutions, and connected and maintenance services. The company sells its solutions primarily through independent distributors in relation with its direct sales force. It serves discrete end markets, including automotive, semiconductor, and warehousing and logistics, as well as general industries comprising printing and publishing, marine, glass, fiber and textiles, airports, and aerospace; hybrid end markets, such as food and beverage, life sciences, household and personal care, and tire, as well as eco industrial, including water/wastewater, waste management, mass transit, and renewable energy; and process end markets comprising oil and gas, mining, metals, chemicals, pulp and paper, and others. Rockwell Automation, Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin.

About ESS Tech

(Get Free Report)

ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.

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