Enersys (NYSE:ENS – Get Free Report) and Rockwell Automation (NYSE:ROK – Get Free Report) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.
Valuation & Earnings
This table compares Enersys and Rockwell Automation”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enersys | $3.79 billion | 1.43 | $293.56 million | $9.34 | 16.09 |
| Rockwell Automation | $8.99 billion | 5.03 | $1.41 billion | $12.55 | 32.43 |
Rockwell Automation has higher revenue and earnings than Enersys. Enersys is trading at a lower price-to-earnings ratio than Rockwell Automation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
94.9% of Enersys shares are held by institutional investors. Comparatively, 75.7% of Rockwell Automation shares are held by institutional investors. 1.1% of Enersys shares are held by insiders. Comparatively, 0.8% of Rockwell Automation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Enersys has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Rockwell Automation has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.
Dividends
Enersys pays an annual dividend of $1.15 per share and has a dividend yield of 0.8%. Rockwell Automation pays an annual dividend of $5.80 per share and has a dividend yield of 1.4%. Enersys pays out 12.3% of its earnings in the form of a dividend. Rockwell Automation pays out 46.2% 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. Enersys has raised its dividend for 2 consecutive years and Rockwell Automation has raised its dividend for 15 consecutive years. Rockwell Automation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Enersys and Rockwell Automation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enersys | 9.29% | 24.02% | 11.42% |
| Rockwell Automation | 15.68% | 41.79% | 13.44% |
Analyst Ratings
This is a summary of recent ratings for Enersys and Rockwell Automation, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enersys | 0 | 2 | 4 | 0 | 2.67 |
| Rockwell Automation | 0 | 13 | 9 | 0 | 2.41 |
Enersys presently has a consensus price target of $257.50, indicating a potential upside of 71.35%. Rockwell Automation has a consensus price target of $471.33, indicating a potential upside of 15.82%. Given Enersys’ stronger consensus rating and higher possible upside, equities analysts clearly believe Enersys is more favorable than Rockwell Automation.
Summary
Rockwell Automation beats Enersys on 12 of the 17 factors compared between the two stocks.
About Enersys
EnerSys (NYSE: ENS) is a global provider of stored-energy solutions for industrial applications. Its products include batteries, chargers, power-conversion equipment and energy-storage systems, along with related services such as installation, maintenance and recycling. The company serves customers in markets including material handling, telecommunications, data centers, utilities, aerospace and defense, and transportation. Its offerings include lead-acid and lithium-ion batteries and other power systems designed for applications ranging from forklifts and other industrial vehicles to backup and grid-support power.
About Rockwell Automation
Rockwell Automation, Inc. is an industrial automation and digital transformation company headquartered in Milwaukee, Wisconsin. Its roots date to 1903, when it was founded as the Compression Rheostat Company. The company provides hardware, software and services that help manufacturers automate and manage industrial operations. Its offerings include control systems, sensors, motor-control products, industrial software and services for optimizing production and maintaining equipment. Its Allen-Bradley and FactoryTalk brands are among its best-known product lines.
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