Analyzing Rockwell Automation (NYSE:ROK) and Casio Computer (OTCMKTS:CSIOY)

Rockwell Automation (NYSE:ROK) and Casio Computer (OTCMKTS:CSIOY) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

75.8% of Rockwell Automation shares are held by institutional investors. 0.7% of Rockwell Automation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Rockwell Automation and Casio Computer, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rockwell Automation	1	5	11	1	2.67
Casio Computer	0	0	0	0	0.00

Rockwell Automation currently has a consensus price target of $364.75, suggesting a potential downside of 3.15%. Given Rockwell Automation’s stronger consensus rating and higher probable upside, equities analysts plainly believe Rockwell Automation is more favorable than Casio Computer.

Profitability

This table compares Rockwell Automation and Casio Computer’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rockwell Automation	12.03%	30.14%	9.83%
Casio Computer	2.18%	4.78%	3.12%

Volatility and Risk

Rockwell Automation has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, Casio Computer has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Dividends

Rockwell Automation pays an annual dividend of $5.52 per share and has a dividend yield of 1.5%. Casio Computer pays an annual dividend of $2.78 per share and has a dividend yield of 3.4%. Rockwell Automation pays out 72.1% of its earnings in the form of a dividend. Casio Computer pays out 166.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rockwell Automation has raised its dividend for 15 consecutive years.

Valuation & Earnings

This table compares Rockwell Automation and Casio Computer”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rockwell Automation	$8.34 billion	5.07	$952.50 million	$7.66	49.16
Casio Computer	$1.72 billion	1.13	$53.22 million	$1.67	48.98

Rockwell Automation has higher revenue and earnings than Casio Computer. Casio Computer is trading at a lower price-to-earnings ratio than Rockwell Automation, indicating that it is currently the more affordable of the two stocks.

Summary

Rockwell Automation beats Casio Computer on 16 of the 18 factors compared between the two stocks.

About Rockwell Automation

Rockwell Automation, Inc. provides industrial automation and digital transformation solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through three segments, Intelligent Devices, Software & Control, and Lifecycle Services. Its solutions include hardware and software products and services. The Intelligent Devices segment offers drives, motion, safety, sensing, industrial components, and configured-to-order products. The Software & Control segment provides control and visualization software and hardware, information software, and network and security infrastructure solutions. The Lifecycle Services segment provides consulting, professional services and solutions, and connected and maintenance services. The company sells its solutions primarily through independent distributors in relation with its direct sales force. It serves discrete end markets, including automotive, semiconductor, and warehousing and logistics, as well as general industries comprising printing and publishing, marine, glass, fiber and textiles, airports, and aerospace; hybrid end markets, such as food and beverage, life sciences, household and personal care, and tire, as well as eco industrial, including water/wastewater, waste management, mass transit, and renewable energy; and process end markets comprising oil and gas, mining, metals, chemicals, pulp and paper, and others. Rockwell Automation, Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin.

About Casio Computer

Casio Computer Co.,Ltd. develops, produces, and sells consumer, system equipment, and other products. The company operates in Timepieces, Consumer, System Equipment, and Other segments. It offers timepieces, electronic dictionaries, calculators, label printers, electronic musical instruments, handheld terminals, cash registers, management support systems, data projectors, formed parts, and molds products. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.