Rockwell Automation (NYSE:ROK) and American Superconductor (NASDAQ:AMSC) are both industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Institutional & Insider Ownership
76.2% of Rockwell Automation shares are held by institutional investors. Comparatively, 48.8% of American Superconductor shares are held by institutional investors. 0.8% of Rockwell Automation shares are held by insiders. Comparatively, 5.0% of American Superconductor shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Rockwell Automation has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, American Superconductor has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.
Profitability
This table compares Rockwell Automation and American Superconductor's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Rockwell Automation | 16.17% | 81.39% | 12.65% |
American Superconductor | -25.34% | -27.88% | -16.97% |
Valuation & Earnings
This table compares Rockwell Automation and American Superconductor's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Rockwell Automation | $6.33 billion | 4.80 | $1.02 billion | $7.68 | 34.08 |
American Superconductor | $63.84 million | 7.15 | $-17,100,000.00 | ($1.02) | -16.24 |
Rockwell Automation has higher revenue and earnings than American Superconductor. American Superconductor is trading at a lower price-to-earnings ratio than Rockwell Automation, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Rockwell Automation and American Superconductor, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Rockwell Automation | 3 | 9 | 7 | 0 | 2.21 |
American Superconductor | 0 | 1 | 2 | 0 | 2.67 |
Rockwell Automation currently has a consensus price target of $250.3077, suggesting a potential downside of 4.63%. American Superconductor has a consensus price target of $21.00, suggesting a potential upside of 27.97%. Given American Superconductor's stronger consensus rating and higher probable upside, analysts clearly believe American Superconductor is more favorable than Rockwell Automation.
Summary
Rockwell Automation beats American Superconductor on 10 of the 14 factors compared between the two stocks.