Regal Rexnord (NYSE:RRX – Get Free Report) and ESS Tech (NYSE:GWH – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.
Valuation & Earnings
This table compares Regal Rexnord and ESS Tech”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Regal Rexnord | $5.93 billion | 1.75 | $279.50 million | $4.85 | 32.18 |
| ESS Tech | $1.58 million | 3.65 | -$63.44 million | ($2.93) | -0.06 |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Regal Rexnord and ESS Tech, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Regal Rexnord | 0 | 3 | 8 | 0 | 2.73 |
| ESS Tech | 1 | 0 | 1 | 0 | 2.00 |
Regal Rexnord presently has a consensus target price of $244.92, indicating a potential upside of 56.90%. ESS Tech has a consensus target price of $2.00, indicating a potential upside of 1,042.86%. Given ESS Tech’s higher possible upside, analysts plainly believe ESS Tech is more favorable than Regal Rexnord.
Volatility and Risk
Regal Rexnord has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, ESS Tech has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.
Profitability
This table compares Regal Rexnord and ESS Tech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Regal Rexnord | 5.35% | 9.93% | 4.91% |
| ESS Tech | N/A | -1,934.84% | -156.40% |
Insider & Institutional Ownership
99.7% of Regal Rexnord shares are held by institutional investors. Comparatively, 46.8% of ESS Tech shares are held by institutional investors. 0.6% of Regal Rexnord shares are held by insiders. Comparatively, 1.4% of ESS Tech shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Regal Rexnord beats ESS Tech on 10 of the 14 factors compared between the two stocks.
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.
About ESS Tech
ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.
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