Rockwell Automation (NYSE: ROK) is one of 46 public companies in the “Electrical Components & Equipment” industry, but how does it contrast to its competitors? We will compare Rockwell Automation to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, earnings, profitability and analyst recommendations.

Profitability

This table compares Rockwell Automation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rockwell Automation 13.04% 40.71% 12.03%
Rockwell Automation Competitors -3.11% 5.25% 2.19%

Insider and Institutional Ownership

73.6% of Rockwell Automation shares are held by institutional investors. Comparatively, 66.5% of shares of all “Electrical Components & Equipment” companies are held by institutional investors. 1.7% of Rockwell Automation shares are held by company insiders. Comparatively, 6.4% of shares of all “Electrical Components & Equipment” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Rockwell Automation and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rockwell Automation 1 11 2 0 2.07
Rockwell Automation Competitors 256 1040 1229 13 2.39

Rockwell Automation currently has a consensus price target of $148.23, indicating a potential downside of 15.37%. As a group, “Electrical Components & Equipment” companies have a potential upside of 5.34%. Given Rockwell Automation’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Rockwell Automation has less favorable growth aspects than its competitors.

Dividends

Rockwell Automation pays an annual dividend of $3.04 per share and has a dividend yield of 1.7%. Rockwell Automation pays out 49.0% of its earnings in the form of a dividend. As a group, “Electrical Components & Equipment” companies pay a dividend yield of 1.6% and pay out 45.5% of their earnings in the form of a dividend. Rockwell Automation has increased its dividend for 7 consecutive years.

Earnings and Valuation

This table compares Rockwell Automation and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Rockwell Automation $6.18 billion $1.22 billion 28.25
Rockwell Automation Competitors $1.91 billion $302.41 million -36.09

Rockwell Automation has higher revenue and earnings than its competitors. Rockwell Automation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Rockwell Automation has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Rockwell Automation’s competitors have a beta of 1.29, suggesting that their average stock price is 29% more volatile than the S&P 500.

Summary

Rockwell Automation beats its competitors on 8 of the 15 factors compared.

Rockwell Automation Company Profile

Rockwell Automation, Inc. (Rockwell Automation) is a provider of industrial automation power, control and information solutions for manufacturers. The Company operates through two segments: Architecture & Software and Control Products & Solutions. The Architecture & Software segment contains various hardware, software and communication components of the Company’s integrated control and information architecture capable of controlling the customer’s industrial processes and connecting with their manufacturing enterprise. Architecture & Software has a portfolio of products, including Control platforms that perform multiple control disciplines and monitoring of applications, including discrete, batch and continuous process, drives control, motion control and machine safety control. The Control Products & Solutions segment portfolio includes low and medium voltage electro-mechanical and electronic motor starters, signaling devices, termination and protection devices, relays and timers.

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