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.
Eaton (NYSE:ETN) and Emerson Electric (NYSE:EMR) are both large-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their community ranking, dividends, earnings, media sentiment, analyst recommendations, institutional ownership, profitability, valuation and risk.
Eaton currently has a consensus target price of $314.27, suggesting a potential downside of 5.96%. Emerson Electric has a consensus target price of $120.56, suggesting a potential upside of 8.71%. Given Emerson Electric's stronger consensus rating and higher possible upside, analysts plainly believe Emerson Electric is more favorable than Eaton.
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.
In the previous week, Eaton had 5 more articles in the media than Emerson Electric. MarketBeat recorded 14 mentions for Eaton and 9 mentions for Emerson Electric. Emerson Electric's average media sentiment score of 1.14 beat Eaton's score of 1.08 indicating that Emerson Electric is being referred to more favorably in the news media.
Emerson Electric has a net margin of 64.97% compared to Eaton's net margin of 14.38%. Eaton's return on equity of 20.69% beat Emerson Electric's return on equity.
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.
Eaton has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Emerson Electric has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.
83.0% of Eaton shares are owned by institutional investors. Comparatively, 74.3% of Emerson Electric shares are owned by institutional investors. 0.5% of Eaton shares are owned by insiders. Comparatively, 0.3% of Emerson Electric shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Eaton pays an annual dividend of $3.76 per share and has a dividend yield of 1.1%. Emerson Electric pays an annual dividend of $2.10 per share and has a dividend yield of 1.9%. 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. Emerson Electric is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Eaton and Emerson Electric tied by winning 10 of the 20 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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