Powell Industries (NASDAQ:POWL – Get Free Report) and Regal Rexnord (NYSE:RRX – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.
Dividends
Powell Industries pays an annual dividend of $0.36 per share and has a dividend yield of 0.2%. Regal Rexnord pays an annual dividend of $1.40 per share and has a dividend yield of 0.9%. Powell Industries pays out 6.9% of its earnings in the form of a dividend. Regal Rexnord pays out 28.9% 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. Powell Industries has increased its dividend for 3 consecutive years.
Profitability
This table compares Powell Industries and Regal Rexnord’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Powell Industries | 16.49% | 27.51% | 15.94% |
| Regal Rexnord | 5.35% | 9.93% | 4.91% |
Institutional and Insider Ownership
Volatility & Risk
Powell Industries has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Regal Rexnord has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for Powell Industries and Regal Rexnord, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Powell Industries | 0 | 3 | 2 | 2 | 2.86 |
| Regal Rexnord | 0 | 3 | 8 | 0 | 2.73 |
Powell Industries presently has a consensus price target of $215.42, suggesting a potential upside of 12.25%. Regal Rexnord has a consensus price target of $244.92, suggesting a potential upside of 60.46%. Given Regal Rexnord’s higher possible upside, analysts plainly believe Regal Rexnord is more favorable than Powell Industries.
Earnings and Valuation
This table compares Powell Industries and Regal Rexnord”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Powell Industries | $1.10 billion | 6.33 | $180.75 million | $5.21 | 36.83 |
| Regal Rexnord | $5.93 billion | 1.71 | $279.50 million | $4.85 | 31.47 |
Regal Rexnord has higher revenue and earnings than Powell Industries. Regal Rexnord is trading at a lower price-to-earnings ratio than Powell Industries, indicating that it is currently the more affordable of the two stocks.
Summary
Powell Industries beats Regal Rexnord on 12 of the 18 factors compared between the two stocks.
About Powell Industries
Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems. The company’s principal products include integrated power control room substations, custom-engineered modules, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, switches, and bus duct systems, as well as traditional and arc-resistant distribution switchgears and control gears. Its products have application in voltages ranging from 480 volts to 38,000 volts. The company also provide field service inspection, installation, commissioning, modification and repair, spare parts, retrofit and retrofill components for existing systems, and replacement circuit breakers for switchgear. It serves onshore and offshore production, liquefied natural gas facilities and terminals, pipelines, refineries, and petrochemical plants, as well as electric utility, light rail traction power, mining and metals, pulp and paper, data centers and other municipal, commercial, and industrial markets. The company has operations in the United States, Canada, the Middle East, Africa, Europe, Mexico, and Central and South America. Powell Industries, Inc. was founded in 1947 and is headquartered in Houston, Texas.
About Regal Rexnord
Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets. The Power Efficiency Solutions segment offers AC and DC motors, electronic variable speed controls, and blowers for residential, commercial HVAC, water heaters, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, agriculture, conveying, and general commercial equipment markets. The Automation and Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, rotary precision motion solutions, high-efficiency miniature motors, motion controls, automation transfer switches, and switchgear for industrial applications and automation systems for material handling, aerospace and defense, factory automation, data centers, medical device, packaging, printing, semiconductor, robotic, industrial power tool, mobile off-highway, food and beverage processing, and other applications. The Industrial Systems segment offers integral motors, alternators, and aftermarket parts and kits for agriculture, marine, mining, oil and gas, food and beverage, data centers, prime and standby power, and general industrial equipment markets. It sells its products directly to original equipment manufacturers, distributors, and end-users. The company was formerly known as Regal Beloit Corporation. The company was founded in 1955 and is based in Milwaukee, Wisconsin.
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