Thermon Group (NYSE:THR) and Emerson Electric (NYSE:EMR) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.
Risk and Volatility
Thermon Group has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Emerson Electric has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.
Institutional & Insider Ownership
73.6% of Emerson Electric shares are owned by institutional investors. 1.6% of Thermon Group shares are owned by insiders. Comparatively, 0.5% of Emerson Electric shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Thermon Group and Emerson Electric's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Thermon Group | $383.49 million | 1.70 | $11.94 million | $0.75 | 26.12 |
Emerson Electric | $16.79 billion | 3.29 | $1.97 billion | $3.46 | 26.62 |
Emerson Electric has higher revenue and earnings than Thermon Group. Thermon Group is trading at a lower price-to-earnings ratio than Emerson Electric, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for Thermon Group and Emerson Electric, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Thermon Group | 0 | 0 | 1 | 0 | 3.00 |
Emerson Electric | 0 | 3 | 10 | 0 | 2.77 |
Thermon Group presently has a consensus price target of $26.00, indicating a potential upside of 32.72%. Emerson Electric has a consensus price target of $86.5385, indicating a potential downside of 6.05%. Given Thermon Group's stronger consensus rating and higher possible upside, equities research analysts plainly believe Thermon Group is more favorable than Emerson Electric.
Profitability
This table compares Thermon Group and Emerson Electric's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Thermon Group | -0.22% | 2.87% | 1.63% |
Emerson Electric | 11.71% | 25.98% | 9.61% |
Summary
Emerson Electric beats Thermon Group on 11 of the 14 factors compared between the two stocks.