Contrasting Rockwell Automation (NYSE:ROK) & Enersys (NYSE:ENS)

Rockwell Automation (NYSE:ROK) and Enersys (NYSE:ENS) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, dividends, valuation, earnings and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Rockwell Automation and Enersys, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rockwell Automation	0	13	9	0	2.41
Enersys	0	1	5	0	2.83

Rockwell Automation currently has a consensus price target of $468.00, indicating a potential upside of 18.66%. Enersys has a consensus price target of $265.00, indicating a potential upside of 82.59%. Given Enersys’ stronger consensus rating and higher probable upside, analysts clearly believe Enersys is more favorable than Rockwell Automation.

Dividends

Rockwell Automation pays an annual dividend of $5.52 per share and has a dividend yield of 1.4%. Enersys pays an annual dividend of $1.15 per share and has a dividend yield of 0.8%. Rockwell Automation pays out 51.7% of its earnings in the form of a dividend. Enersys pays out 12.3% 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. Rockwell Automation has increased its dividend for 15 consecutive years and Enersys has increased its dividend for 2 consecutive years. Rockwell Automation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

75.7% of Rockwell Automation shares are owned by institutional investors. Comparatively, 94.9% of Enersys shares are owned by institutional investors. 0.8% of Rockwell Automation shares are owned by company insiders. Comparatively, 1.1% of Enersys shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Rockwell Automation and Enersys”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rockwell Automation	$8.34 billion	5.25	$869.00 million	$10.67	36.96
Enersys	$3.75 billion	1.40	$293.56 million	$9.34	15.54

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

Risk & Volatility

Rockwell Automation has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Enersys has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Profitability

This table compares Rockwell Automation and Enersys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rockwell Automation	13.39%	39.83%	12.97%
Enersys	9.29%	24.02%	11.42%

Summary

Rockwell Automation beats Enersys on 12 of the 17 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 Enersys

EnerSys engages in the provision of stored energy solutions for industrial applications worldwide. It operates in four segments: Energy Systems, Motive Power, Specialty, and New Ventures. The Energy Systems segment offers uninterruptible power systems (UPS) applications for computer and computer-controlled systems, as well as telecommunications systems; switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage, and energy pipelines; integrated power solutions and services to broadband, telecom, data center, and renewable and industrial customers; and thermally managed cabinets and enclosures for electronic equipment and batteries. The Motive Power segment provides power solutions for electric industrial forklifts used in manufacturing, warehousing, and other material handling applications, as well as automated guided vehicles, mining equipment, and diesel locomotive starting and other rail equipment. The Specialty offers batteries for starting, lighting, and ignition applications in automotive and over-the-road trucks; and energy solutions for satellites, spacecraft, commercial aircraft, military land vehicles, aircraft, submarines, ships, and other tactical vehicles, as well as medical devices and equipment. The New Venture segment provides energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. The company also offers battery chargers, power equipment, battery accessories, and outdoor cabinet enclosures, as well as related after-market and customer-support services for industrial batteries. It sells its products through a network of distributors, independent representatives, and internal sales forces. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001. EnerSys was founded in 1991 and is headquartered in Reading, Pennsylvania.