Regal Rexnord (NYSE:RRX) and Nauticus Robotics (NASDAQ:KITT) Financial Analysis

Nauticus Robotics (NASDAQ:KITT) and Regal Rexnord (NYSE:RRX) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Insider and Institutional Ownership

20.5% of Nauticus Robotics shares are owned by institutional investors. Comparatively, 99.7% of Regal Rexnord shares are owned by institutional investors. 17.0% of Nauticus Robotics shares are owned by company insiders. Comparatively, 0.8% of Regal Rexnord shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nauticus Robotics	-850.23%	N/A	-84.24%
Regal Rexnord	-0.48%	9.42%	3.86%

Earnings and Valuation

This table compares Nauticus Robotics and Regal Rexnord’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nauticus Robotics	$6.61 million	1.46	-$50.69 million	($1.28)	-0.12
Regal Rexnord	$6.25 billion	1.50	-$57.40 million	($0.48)	-294.42

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

Volatility & Risk

Nauticus Robotics has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500. Comparatively, Regal Rexnord has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Nauticus Robotics and Regal Rexnord, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nauticus Robotics	0	0	0	0	N/A
Regal Rexnord	0	0	5	0	3.00

Regal Rexnord has a consensus price target of $192.00, suggesting a potential upside of 35.86%. Given Regal Rexnord’s higher probable upside, analysts plainly believe Regal Rexnord is more favorable than Nauticus Robotics.

Summary

Regal Rexnord beats Nauticus Robotics on 10 of the 13 factors compared between the two stocks.

About Nauticus Robotics

Nauticus Robotics, Inc. develops ocean robots, cloud software, and services to the ocean industry. The company offers Aquanaut, an autonomous underwater vehicle with sensor suite, which provides capability to observe and inspect subsea assets or other subsea features; Olympic Arm, an all-electric manipulator designed for a variety of intervention tasks on work class remotely operated vehicles; and ToolKITT, a software platform, which consists of interrelated products for ocean sensing, manipulation, autonomous behaviors, survey, search and recovery, and manual intervention. The company was founded in 2014 and is headquartered in Webster, Texas.

About Regal Rexnord

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.