ETN vs. EMR, ROP, AME, ROK, ENPH, GNRC, AYI, FELE, WIRE, and ENS
Should you be buying Eaton stock or one of its competitors? The main competitors of Eaton include Emerson Electric (EMR), 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.
Emerson Electric (NYSE:EMR) and Eaton (NYSE:ETN) are both large-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, community ranking, risk, profitability, dividends, media sentiment and valuation.
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 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Eaton has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.
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 company insiders. Comparatively, 0.5% of Eaton shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
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 1.1%. 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 has raised its dividend for 67 consecutive years and Eaton has raised its dividend for 15 consecutive years. Emerson Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
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.
Emerson Electric currently has a consensus price target of $120.56, indicating a potential upside of 7.49%. Eaton has a consensus price target of $314.27, indicating a potential downside of 5.58%. Given Eaton's stronger consensus rating and higher probable upside, equities research analysts clearly believe Emerson Electric is more favorable than Eaton.
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 3 more articles in the media than Emerson Electric. MarketBeat recorded 15 mentions for Eaton and 12 mentions for Emerson Electric. Emerson Electric's average media sentiment score of 1.09 beat Eaton's score of 0.77 indicating that Eaton is being referred to more favorably in the news media.
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 ETN 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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