Head-To-Head Survey: GrafTech International (NYSE:EAF) and Emerson Electric (NYSE:EMR)

GrafTech International (NYSE:EAF) and Emerson Electric (NYSE:EMR) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GrafTech International	-34.58%	N/A	-17.50%
Emerson Electric	13.83%	17.58%	8.50%

Analyst Ratings

This is a summary of recent ratings and target prices for GrafTech International and Emerson Electric, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrafTech International	2	4	0	0	1.67
Emerson Electric	1	9	13	1	2.58

GrafTech International currently has a consensus price target of $10.67, indicating a potential upside of 21.31%. Emerson Electric has a consensus price target of $169.83, indicating a potential upside of 4.61%. Given GrafTech International’s higher possible upside, equities research analysts clearly believe GrafTech International is more favorable than Emerson Electric.

Insider & Institutional Ownership

92.8% of GrafTech International shares are owned by institutional investors. Comparatively, 74.3% of Emerson Electric shares are owned by institutional investors. 1.2% of GrafTech International shares are owned by insiders. Comparatively, 0.2% of Emerson Electric shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares GrafTech International and Emerson Electric”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GrafTech International	$504.13 million	0.46	-$219.84 million	($6.80)	-1.29
Emerson Electric	$18.02 billion	5.05	$2.29 billion	$4.57	35.52

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

Volatility & Risk

GrafTech International has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500. Comparatively, Emerson Electric has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.

Summary

Emerson Electric beats GrafTech International on 11 of the 15 factors compared between the two stocks.

About GrafTech International

GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. The company offers graphite electrodes to produce electric arc furnace steel and other ferrous and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes and synthetic graphite. It sells its products primarily through direct sales force, independent sales representatives, and distributors. GrafTech International Ltd. was founded in 1886 and is headquartered in Brooklyn Heights, Ohio.

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.