Head to Head Review: Rockwell Automation (NYSE:ROK) and Location Based Technologies (OTCMKTS:LBAS)

Location Based Technologies (OTCMKTS:LBAS) and Rockwell Automation (NYSE:ROK) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Volatility & Risk

Location Based Technologies has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Rockwell Automation has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Profitability

This table compares Location Based Technologies and Rockwell Automation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Location Based Technologies	N/A	N/A	N/A
Rockwell Automation	10.42%	32.69%	10.69%

Valuation & Earnings

This table compares Location Based Technologies and Rockwell Automation”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Location Based Technologies	N/A	N/A	N/A	N/A	N/A
Rockwell Automation	$8.34 billion	5.70	$869.00 million	$7.66	55.31

Rockwell Automation has higher revenue and earnings than Location Based Technologies.

Analyst Recommendations

This is a breakdown of current recommendations for Location Based Technologies and Rockwell Automation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Location Based Technologies	0	0	0	0	0.00
Rockwell Automation	0	10	9	2	2.62

Rockwell Automation has a consensus target price of $410.12, indicating a potential downside of 3.21%. Given Rockwell Automation’s stronger consensus rating and higher possible upside, analysts plainly believe Rockwell Automation is more favorable than Location Based Technologies.

Insider & Institutional Ownership

75.8% of Rockwell Automation shares are held by institutional investors. 24.1% of Location Based Technologies shares are held by company insiders. Comparatively, 0.8% of Rockwell Automation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Rockwell Automation beats Location Based Technologies on 10 of the 11 factors compared between the two stocks.

About Location Based Technologies

Location Based Technologies, Inc. designs, develops, and sells commercial and consumer wearable global positioning system (GPS) tracking solutions based on worldwide GSM network. It offers consumer products under the PocketFinder brand, including PocketFinder, PocketFinder luggage, PocketFinder Pet, and PocketFinder Vehicle that displays information to users regarding device location, longitude, latitude, altitude, heading or direction, speed, and 60 days of location history; and set alerts that will trigger an email, text, or push notification to notify them when their device exceeds a pre-determined parameter, such as speed, battery life, or entry/exit of a geo-zone. The company's PocketFinder Personal/Pet or luggage devices include small devices that are ideal for tracking or locating any mobile asset, person, pet, or valuable item; and PocketFinder Vehicle tracker is to be hardwired to any powered asset, such as vehicle, watercraft, or mobile generator to locate and track a mobile assets. It also provides commercial products under the LBT brand, including LBT-886 and LBT Vehicle Tracker. The company's LBT-886 comprises location device that enables a user to locate and track any person or mobile asset; and LBT Vehicle Tracker provides tracking features with capabilities, such as temperature, light and humidity monitoring, engine on/off monitoring, and starter interrupt engine capability or lone worker emergency alerts. It markets and sells its commercial products to small/midsize businesses, enterprise businesses, and governmental organizations that need to track vehicles, mobile equipment, portable assets, and workers through online retailers, as well as through its pocketfinder.com Website. The company was founded in 2006 and is based in Irvine, California.

About Rockwell Automation

Rockwell Automation, Inc. provides industrial automation and digital transformation solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through three segments, Intelligent Devices, Software & Control, and Lifecycle Services. Its solutions include hardware and software products and services. The Intelligent Devices segment offers drives, motion, safety, sensing, industrial components, and configured-to-order products. The Software & Control segment provides control and visualization software and hardware, information software, and network and security infrastructure solutions. The Lifecycle Services segment provides consulting, professional services and solutions, and connected and maintenance services. The company sells its solutions primarily through independent distributors in relation with its direct sales force. It serves discrete end markets, including automotive, semiconductor, and warehousing and logistics, as well as general industries comprising printing and publishing, marine, glass, fiber and textiles, airports, and aerospace; hybrid end markets, such as food and beverage, life sciences, household and personal care, and tire, as well as eco industrial, including water/wastewater, waste management, mass transit, and renewable energy; and process end markets comprising oil and gas, mining, metals, chemicals, pulp and paper, and others. Rockwell Automation, Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin.