Contrasting Emerson Electric (NYSE:EMR) and Standex International (NYSE:SXI)

Emerson Electric (NYSE:EMR) and Standex International (NYSE:SXI) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Emerson Electric and Standex International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Emerson Electric	0	2	14	0	2.88
Standex International	0	0	4	0	3.00

Emerson Electric currently has a consensus target price of $115.47, suggesting a potential upside of 2.50%. Standex International has a consensus target price of $195.00, suggesting a potential upside of 13.74%. Given Standex International’s stronger consensus rating and higher possible upside, analysts clearly believe Standex International is more favorable than Emerson Electric.

Profitability

This table compares Emerson Electric and Standex International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Emerson Electric	69.33%	11.59%	6.62%
Standex International	18.80%	13.63%	8.22%

Volatility and Risk

Emerson Electric has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Standex International has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.

Earnings & Valuation

This table compares Emerson Electric and Standex International’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Emerson Electric	$15.17 billion	4.24	$13.22 billion	$19.20	5.87
Standex International	$741.05 million	2.75	$138.99 million	$11.62	14.75

Emerson Electric has higher revenue and earnings than Standex International. Emerson Electric is trading at a lower price-to-earnings ratio than Standex International, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

74.3% of Emerson Electric shares are owned by institutional investors. Comparatively, 90.4% of Standex International shares are owned by institutional investors. 0.3% of Emerson Electric shares are owned by company insiders. Comparatively, 2.3% of Standex International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Emerson Electric pays an annual dividend of $2.10 per share and has a dividend yield of 1.9%. Standex International pays an annual dividend of $1.20 per share and has a dividend yield of 0.7%. Emerson Electric pays out 10.9% of its earnings in the form of a dividend. Standex International pays out 10.3% 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. Emerson Electric has increased its dividend for 67 consecutive years and Standex International has increased its dividend for 13 consecutive years. Emerson Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Emerson Electric beats Standex International on 9 of the 17 factors compared between the two stocks.

About Emerson Electric

Emerson Electric Co., a technology and software company, provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. It operates in six segments: Final Control, Control Systems & Software, Measurement & Analytical, AspenTech, Discrete Automation, and Safety & Productivity. The Final Control segment provides control, isolation, shutoff, pressure relief, and pressure safety valves, actuators, and regulators for process and hybrid industries. The Measurement & Analytical segment offers intelligent instrumentation measuring the physical properties of liquids or gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame. The Discrete Automation segment offers solenoid and pneumatic valves, valve position indicators, pneumatic cylinders, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems, electrical distribution equipment, and materials joining solutions. The Safety & Productivity segment offers tools for professionals and homeowners; pipe-working tools, including pipe wrenches, pipe cutters, pipe threading and roll grooving equipment, battery hydraulic tools; electrical tools; and other professional tools. The Control Systems & Software segment provides distributed control systems, safety instrumented systems, SCADA systems, application software, digital twins, asset performance management, and cybersecurity. The Test & Measurement provides software-connected automated test and measurement systems. The AspenTech segment provides asset optimization software that enables industrial manufacturers to design, operate, and maintain operations for enhancing performance through a combination of decades of modeling, simulation, and optimization capabilities. The company was incorporated in 1890 and is headquartered in Saint Louis, Missouri.

About Standex International

Standex International Corporation, together with subsidiaries, manufactures and sells various products and services for commercial and industrial markets in the United States and internationally. It operates through five segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions. The Electronics segment offers reed relays, fluid level, proximity, motion, flow, HVAC condensate, and custom electronics sensors; and current sense and advanced planar transformer technologies, value added assemblies, and mechanical packaging, as well as custom wound transformers and inductors for low and high frequency applications under the Standex Electronics, Renco, and Agile Magnetics. The Engraving segment provides mold texturizing, slush molding tools, roll engraving, hygiene product tooling, and low observation vents, as well as project management and design services for stealth aircraft; and process machinery for various industries under the Piazza Rosa, World Client Service, Tenibac-Graphion, and Innovent brand names. The Scientific segment offers temperature controlled equipment for the medical, scientific, pharmaceutical, biotech, and industrial markets under the American BioTech Supply, Lab Research Products, Corepoint, Cryosafe, CryoGuard, and Scientific brands. The Engineering Technologies segment offers net and near net formed single-source customized solutions that are used in the manufacture of engineered components for the aviation, aerospace, defense, energy, industrial, medical, marine, oil and gas, and manned and unmanned space markets under the Spincraft brand. The Specialty Solutions segment manufactures and sells refrigerated, heated and dry merchandizing display cases, custom fluid pump solutions, single and double acting telescopic, and piston rod hydraulic cylinders under the Federal and Custom Hoist brands Standex International Corporation was founded in 1955 and is headquartered in Salem, New Hampshire.