Belden (NYSE:BDC) and Rockwell Automation (NYSE:ROK) are both industrial products companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.
Profitability
This table compares Belden and Rockwell Automation's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Belden | -10.95% | 15.55% | 4.31% |
Rockwell Automation | 16.17% | 81.39% | 12.65% |
Dividends
Belden pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. Rockwell Automation pays an annual dividend of $4.28 per share and has a dividend yield of 1.7%. Belden pays out 4.4% of its earnings in the form of a dividend. Rockwell Automation pays out 55.7% 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. Belden has increased its dividend for 1 consecutive years and Rockwell Automation has increased its dividend for 11 consecutive years. Rockwell Automation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
76.2% of Rockwell Automation shares are held by institutional investors. 1.2% of Belden 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.
Volatility and Risk
Belden has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, Rockwell Automation has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.
Earnings & Valuation
This table compares Belden and Rockwell Automation's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Belden | $2.13 billion | 0.93 | $-377,020,000.00 | $4.52 | 9.85 |
Rockwell Automation | $6.33 billion | 4.64 | $1.02 billion | $7.68 | 32.95 |
Rockwell Automation has higher revenue and earnings than Belden. Belden 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 Ratings
This is a summary of recent recommendations for Belden and Rockwell Automation, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Belden | 1 | 3 | 3 | 0 | 2.29 |
Rockwell Automation | 3 | 9 | 8 | 0 | 2.25 |
Belden currently has a consensus target price of $41.8125, suggesting a potential downside of 6.06%. Rockwell Automation has a consensus target price of $234.4667, suggesting a potential downside of 7.36%. Given Belden's stronger consensus rating and higher probable upside, equities analysts clearly believe Belden is more favorable than Rockwell Automation.
Summary
Rockwell Automation beats Belden on 12 of the 17 factors compared between the two stocks.