Rockwell Automation (NYSE: ROK) and Kyocera Corporation (NYSE:KYO) are both large-cap industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitabiliy.

Institutional & Insider Ownership

73.2% of Rockwell Automation shares are held by institutional investors. Comparatively, 0.6% of Kyocera Corporation shares are held by institutional investors. 1.7% of Rockwell Automation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Rockwell Automation pays an annual dividend of $3.04 per share and has a dividend yield of 1.8%. Kyocera Corporation pays an annual dividend of $0.86 per share and has a dividend yield of 1.4%. Rockwell Automation pays out 49.0% of its earnings in the form of a dividend. Kyocera Corporation pays out 28.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Kyocera Corporation has raised its dividend for 7 consecutive years.

Profitability

This table compares Rockwell Automation and Kyocera Corporation’s 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%
Kyocera Corporation 8.34% 4.96% 3.87%

Valuation and Earnings

This table compares Rockwell Automation and Kyocera Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Rockwell Automation $6.18 billion 3.42 $1.22 billion $6.20 26.60
Kyocera Corporation $12.94 billion 1.76 $1.84 billion $3.04 19.89

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

Risk and Volatility

Rockwell Automation has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Kyocera Corporation has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Rockwell Automation and Kyocera Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rockwell Automation 1 11 2 0 2.07
Kyocera Corporation 0 1 1 0 2.50

Rockwell Automation presently has a consensus target price of $148.31, indicating a potential downside of 10.06%. Given Rockwell Automation’s higher probable upside, analysts clearly believe Rockwell Automation is more favorable than Kyocera Corporation.

Summary

Rockwell Automation beats Kyocera Corporation on 12 of the 17 factors compared between the two stocks.

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.

Kyocera Corporation Company Profile

Kyocera Corporation is engaged in various fields, from fine ceramic components to electronic devices, equipment, services and networks. The Company operates through seven segments: Fine Ceramic Parts Group, Semiconductor Parts Group, Applied Ceramic Products Group, Electronic Device Group, Telecommunications Equipment Group, Information Equipment Group and Others. The Company’s products include components for semiconductor processing equipment and flat panel display manufacturing equipment, information and telecommunication components, general industrial machinery components, sapphire substrates, automotive components, solar energy products, cutting tools, medical and dental implants, jewelry and applied ceramic related products, page printers and multifunctional products. It also offers information systems and telecommunication services, engineering business, management consulting business, materials for semiconductors, chemical materials and realty development business.

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