Emerson Electric (EMR) vs. Its Peers Critical Survey
Emerson Electric (NYSE: EMR) is one of 46 publicly-traded companies in the “Electrical Components & Equipment” industry, but how does it compare to its peers? We will compare Emerson Electric to similar companies based on the strength of its analyst recommendations, dividends, profitability, risk, institutional ownership, earnings and valuation.
This table compares Emerson Electric and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Emerson Electric Competitors||-3.05%||5.37%||2.23%|
Volatility & Risk
Emerson Electric has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Emerson Electric’s peers have a beta of 1.29, indicating that their average stock price is 29% more volatile than the S&P 500.
Institutional and Insider Ownership
70.0% of Emerson Electric shares are owned by institutional investors. Comparatively, 66.5% of shares of all “Electrical Components & Equipment” companies are owned by institutional investors. 0.8% of Emerson Electric shares are owned by company insiders. Comparatively, 6.4% of shares of all “Electrical Components & Equipment” companies are owned 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.
Valuation and Earnings
This table compares Emerson Electric and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Emerson Electric||$14.76 billion||$3.18 billion||28.20|
|Emerson Electric Competitors||$1.91 billion||$302.41 million||-35.95|
Emerson Electric has higher revenue and earnings than its peers. Emerson Electric is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a summary of recent recommendations for Emerson Electric and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Emerson Electric Competitors||256||1044||1232||13||2.39|
Emerson Electric currently has a consensus price target of $61.44, indicating a potential downside of 3.15%. As a group, “Electrical Components & Equipment” companies have a potential upside of 6.03%. Given Emerson Electric’s peers stronger consensus rating and higher probable upside, analysts clearly believe Emerson Electric has less favorable growth aspects than its peers.
Emerson Electric pays an annual dividend of $1.92 per share and has a dividend yield of 3.0%. Emerson Electric pays out 85.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Emerson Electric has raised its dividend for 60 consecutive years.
Emerson Electric beats its peers on 8 of the 15 factors compared.
About Emerson Electric
Emerson Electric Co. is a diversified global manufacturing company, which provides solutions to customers by bringing technology and engineering together in the industrial, commercial and consumer markets around the world. The Company operates through four segments based on the nature of the products and services rendered: Process Management, Industrial Automation, Climate Technologies and Commercial & Residential Solutions. The Company’s principal production operations are electronics assembly, metal stamping, forming, casting, machining, welding, plating, heat treating, painting and assembly. In addition, the Company uses specialized production operations, including automatic and semiautomatic testing, automated material handling and storage, ferrous and nonferrous machining, and special furnaces for heat treating and foundry applications. The Company provides measurement, control and diagnostic technologies for automated industrial processes.
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