AME vs. ETN, EMR, ROP, ROK, ENPH, GNRC, AYI, WIRE, FELE, and ENS
Should you be buying AMETEK stock or one of its competitors? The main competitors of AMETEK include Eaton (ETN), Emerson Electric (EMR), Roper Technologies (ROP), Rockwell Automation (ROK), Enphase Energy (ENPH), Generac (GNRC), Acuity Brands (AYI), Encore Wire (WIRE), Franklin Electric (FELE), and EnerSys (ENS). These companies are all part of the "electrical components & equipment" industry.
Eaton (NYSE:ETN) and AMETEK (NYSE:AME) are both large-cap industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk, analyst recommendations, community ranking and media sentiment.
Eaton pays an annual dividend of $3.76 per share and has a dividend yield of 1.2%. AMETEK pays an annual dividend of $1.12 per share and has a dividend yield of 0.7%. Eaton pays out 44.4% of its earnings in the form of a dividend. AMETEK pays out 19.7% 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. Eaton has increased its dividend for 15 consecutive years and AMETEK has increased its dividend for 5 consecutive years. Eaton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Eaton has higher revenue and earnings than AMETEK. AMETEK is trading at a lower price-to-earnings ratio than Eaton, indicating that it is currently the more affordable of the two stocks.
AMETEK has a net margin of 19.57% compared to AMETEK's net margin of 14.38%. AMETEK's return on equity of 20.69% beat Eaton's return on equity.
83.0% of Eaton shares are held by institutional investors. Comparatively, 87.4% of AMETEK shares are held by institutional investors. 0.5% of Eaton shares are held by company insiders. Comparatively, 0.6% of AMETEK shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Eaton currently has a consensus target price of $314.27, indicating a potential downside of 1.04%. AMETEK has a consensus target price of $181.64, indicating a potential upside of 6.67%. Given Eaton's stronger consensus rating and higher probable upside, analysts clearly believe AMETEK is more favorable than Eaton.
Eaton received 309 more outperform votes than AMETEK when rated by MarketBeat users. However, 72.22% of users gave AMETEK an outperform vote while only 66.59% of users gave Eaton an outperform vote.
In the previous week, Eaton had 8 more articles in the media than AMETEK. MarketBeat recorded 16 mentions for Eaton and 8 mentions for AMETEK. Eaton's average media sentiment score of 1.34 beat AMETEK's score of 1.15 indicating that AMETEK is being referred to more favorably in the news media.
Eaton has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, AMETEK has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.
Summary
AMETEK beats Eaton on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding AME and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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