Orion Energy Systems (NASDAQ:OESX – Get Free Report) and Eaton (NYSE:ETN – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Orion Energy Systems and Eaton, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orion Energy Systems | 0 | 2 | 2 | 0 | 2.50 |
| Eaton | 0 | 2 | 20 | 1 | 2.96 |
Orion Energy Systems presently has a consensus target price of $36.50, suggesting a potential upside of 92.11%. Eaton has a consensus target price of $483.91, suggesting a potential upside of 37.33%. Given Orion Energy Systems’ higher possible upside, equities analysts clearly believe Orion Energy Systems is more favorable than Eaton.
Volatility and Risk
Orion Energy Systems has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Eaton has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.
Earnings and Valuation
This table compares Orion Energy Systems and Eaton”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orion Energy Systems | $86.31 million | 0.90 | -$3.16 million | ($0.05) | -380.00 |
| Eaton | $27.45 billion | 4.99 | $4.09 billion | $9.83 | 35.85 |
Eaton has higher revenue and earnings than Orion Energy Systems. Orion Energy Systems is trading at a lower price-to-earnings ratio than Eaton, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
52.6% of Orion Energy Systems shares are held by institutional investors. Comparatively, 83.0% of Eaton shares are held by institutional investors. 5.3% of Orion Energy Systems shares are held by insiders. Comparatively, 0.1% of Eaton shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Orion Energy Systems and Eaton’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orion Energy Systems | 0.04% | 11.66% | 3.40% |
| Eaton | 12.18% | 25.09% | 9.62% |
Summary
Eaton beats Orion Energy Systems on 12 of the 15 factors compared between the two stocks.
About Orion Energy Systems
Orion Energy Systems, Inc., together with its subsidiaries, researches, designs, develops, manufactures, markets, sells, installs, and implements energy management systems for commercial office and retail, area lighting, industrial applications, and government in North America and Germany. It operates in three segments: Lighting, Maintenance, and Electric Vehicle (EV). The company offers light emitting diode (LED) lighting products; construction and engineering services for commercial lighting and energy management system; lighting and electrical system maintenance, repair, and replacement services; and EV charging station and installation solutions. It also provides LED high bay fixtures and LED troffer retrofits; smart lighting controls, a wireless Internet of Things enabled control solution that provides lighting control options and data intelligence capabilities for building managers; and various LED fixtures for lighting and energy management needs comprising fixtures for agribusinesses, parking lots, roadways, retail, mezzanine, outdoor applications, and private label resale. In addition, the company offers lighting-related energy management services, such as site assessment, site field verification, utility incentive and government subsidy management, engineering design, project management, facility design commissioning, and recycling. It serves customers directly and through independent sales agencies and distributors, national account end-users, federal and state government facilities, regional account end-users, electrical distributors, electrical contractors, and energy service companies. Orion Energy Systems, Inc. was incorporated in 1996 and is headquartered in Manitowoc, Wisconsin.
About Eaton
Eaton Corporation plc operates as a power management company worldwide. The company’s Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems. Its Aerospace segment offers pumps, motors, hydraulic power units, hoses and fittings, and electro-hydraulic pumps; valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems, and nose wheel steering systems; hose, thermoplastic tubing products, fittings, adapters, couplings, and sealing and ducting products; air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, and adapters and regulators; oxygen generation system, payload carriages, and thermal management products; and wiring connectors and cables, as well as hydraulic and bag filters, strainers and cartridges, and golf grips for manufacturers of commercial and military aircraft, and related after-market customers, as well as industrial applications. The company’s Vehicle segment offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited slip differentials, transmission controls, and fuel vapor components for the vehicle industry. Its eMobility segment provides voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. Eaton Corporation plc was founded in 1911 and is based in Dublin, Ireland.
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