EMR vs. ETN, ROP, AME, ROK, ENPH, GNRC, AYI, WIRE, FELE, and ENS
Should you be buying Emerson Electric stock or one of its competitors? The main competitors of Emerson Electric include Eaton (ETN), Roper Technologies (ROP), AMETEK (AME), 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.
Emerson Electric (NYSE:EMR) and Eaton (NYSE:ETN) are both large-cap industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, media sentiment, community ranking, risk, earnings, profitability, analyst recommendations and valuation.
Emerson Electric currently has a consensus target price of $120.56, suggesting a potential upside of 11.65%. Eaton has a consensus target price of $314.27, suggesting a potential downside of 0.18%. Given Emerson Electric's stronger consensus rating and higher possible upside, research analysts clearly believe Emerson Electric is more favorable than Eaton.
In the previous week, Emerson Electric had 1 more articles in the media than Eaton. MarketBeat recorded 17 mentions for Emerson Electric and 16 mentions for Eaton. Eaton's average media sentiment score of 1.10 beat Emerson Electric's score of 0.84 indicating that Eaton is being referred to more favorably in the news media.
Emerson Electric pays an annual dividend of $2.10 per share and has a dividend yield of 1.9%. Eaton pays an annual dividend of $3.76 per share and has a dividend yield of 1.2%. Emerson Electric pays out 11.2% of its earnings in the form of a dividend. Eaton pays out 44.4% 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. Emerson Electric is clearly the better dividend stock, given its higher yield and lower payout ratio.
Emerson Electric has higher earnings, but lower revenue than Eaton. Emerson Electric is trading at a lower price-to-earnings ratio than Eaton, indicating that it is currently the more affordable of the two stocks.
Eaton received 197 more outperform votes than Emerson Electric when rated by MarketBeat users. Likewise, 66.59% of users gave Eaton an outperform vote while only 58.16% of users gave Emerson Electric an outperform vote.
Emerson Electric has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Eaton has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
Emerson Electric has a net margin of 64.97% compared to Eaton's net margin of 14.38%. Eaton's return on equity of 20.69% beat Emerson Electric's return on equity.
74.3% of Emerson Electric shares are owned by institutional investors. Comparatively, 83.0% of Eaton shares are owned by institutional investors. 0.3% of Emerson Electric shares are owned by insiders. Comparatively, 0.5% of Eaton shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Emerson Electric and Eaton tied by winning 10 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding EMR 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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