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

Institutional and Insider Ownership

73.6% of Rockwell Automation shares are owned by institutional investors. Comparatively, 66.5% of shares of all “Electrical Components & Equipment” companies are owned by institutional investors. 1.7% of Rockwell Automation shares are owned by insiders. Comparatively, 6.4% of shares of all “Electrical Components & Equipment” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

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

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 raised its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of current ratings for Rockwell Automation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rockwell Automation 1 11 2 0 2.07
Rockwell Automation Competitors 256 1044 1232 13 2.39

Rockwell Automation currently has a consensus target price of $148.23, indicating a potential downside of 16.53%. As a group, “Electrical Components & Equipment” companies have a potential upside of 5.69%. 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.

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%

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Rockwell Automation $6.18 billion $1.22 billion 28.64
Rockwell Automation Competitors $1.91 billion $302.41 million -36.17

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.

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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