Rockwell Automation (NYSE:ROK) & Spruce Power (NYSE:SPRU) Head to Head Comparison

Spruce Power (NYSE:SPRU) and Rockwell Automation (NYSE:ROK) are both computer and technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spruce Power	-78.82%	-35.22%	-5.68%
Rockwell Automation	12.03%	30.14%	9.83%

Volatility and Risk

Spruce Power has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, Rockwell Automation has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500.

Insider and Institutional Ownership

20.8% of Spruce Power shares are held by institutional investors. Comparatively, 75.8% of Rockwell Automation shares are held by institutional investors. 12.7% of Spruce Power shares are held by insiders. Comparatively, 0.7% of Rockwell Automation shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Spruce Power and Rockwell Automation”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spruce Power	$98.40 million	0.49	-$70.49 million	($4.21)	-0.65
Rockwell Automation	$8.26 billion	4.86	$952.50 million	$8.52	41.90

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Spruce Power and Rockwell Automation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spruce Power	1	0	0	0	1.00
Rockwell Automation	1	5	12	1	2.68

Rockwell Automation has a consensus price target of $347.94, indicating a potential downside of 2.53%. Given Rockwell Automation’s stronger consensus rating and higher possible upside, analysts plainly believe Rockwell Automation is more favorable than Spruce Power.

Summary

Rockwell Automation beats Spruce Power on 13 of the 15 factors compared between the two stocks.

About Spruce Power

Spruce Power Holding Corporation owns and operates distributed solar energy assets in the United States. The company provides subscription-based services for homeowners and businesses to own and maintain rooftop solar and battery storage. It offers its subscription-based services to approximately 75,000 customers. The company is headquartered in Denver, Colorado.

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.