EMR vs. ETN, ROP, AME, ROK, ENPH, GNRC, AYI, FELE, WIRE, 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), Franklin Electric (FELE), Encore Wire (WIRE), and EnerSys (ENS). These companies are all part of the "electrical components & equipment" industry.
Eaton (NYSE:ETN) and Emerson Electric (NYSE:EMR) are both large-cap industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability, community ranking, media sentiment and dividends.
Emerson Electric has a net margin of 64.97% compared to Emerson Electric's net margin of 14.38%. Emerson Electric's return on equity of 20.69% beat Eaton's return on equity.
In the previous week, Eaton had 4 more articles in the media than Emerson Electric. MarketBeat recorded 18 mentions for Eaton and 14 mentions for Emerson Electric. Eaton's average media sentiment score of 0.87 beat Emerson Electric's score of 0.73 indicating that Emerson Electric is being referred to more favorably in the news media.
Emerson Electric has lower revenue, but higher earnings 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.
83.0% of Eaton shares are held by institutional investors. Comparatively, 74.3% of Emerson Electric shares are held by institutional investors. 0.5% of Eaton shares are held by insiders. Comparatively, 0.3% of Emerson Electric shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Eaton has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Emerson Electric has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.
Eaton presently has a consensus price target of $323.06, suggesting a potential upside of 8.49%. Emerson Electric has a consensus price target of $123.44, suggesting a potential upside of 5.65%. Given Emerson Electric's higher possible upside, research analysts clearly believe Eaton is more favorable than Emerson Electric.
Eaton received 196 more outperform votes than Emerson Electric when rated by MarketBeat users. Likewise, 66.59% of users gave Eaton an outperform vote while only 58.22% of users gave Emerson Electric an outperform vote.
Eaton pays an annual dividend of $3.76 per share and has a dividend yield of 1.3%. Emerson Electric pays an annual dividend of $2.10 per share and has a dividend yield of 1.8%. Eaton pays out 44.4% of its earnings in the form of a dividend. Emerson Electric pays out 11.2% 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 raised its dividend for 15 consecutive years and Emerson Electric has raised its dividend for 67 consecutive years. Emerson Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Eaton beats Emerson Electric 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 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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