AMTEK (NYSE: AME) and Rockwell Automation (NYSE:ROK) are both large-cap computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Valuation & Earnings
This table compares AMTEK and Rockwell Automation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|AMTEK||$3.99 billion||3.64||$1.04 billion||$2.28||27.61|
|Rockwell Automation||$6.18 billion||3.39||$1.22 billion||$6.20||26.32|
Rockwell Automation has higher revenue and earnings than AMTEK. Rockwell Automation is trading at a lower price-to-earnings ratio than AMTEK, indicating that it is currently the more affordable of the two stocks.
This table compares AMTEK and Rockwell Automation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for AMTEK and Rockwell Automation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AMTEK currently has a consensus target price of $64.40, indicating a potential upside of 2.32%. Rockwell Automation has a consensus target price of $148.31, indicating a potential downside of 9.11%. Given AMTEK’s stronger consensus rating and higher possible upside, equities research analysts plainly believe AMTEK is more favorable than Rockwell Automation.
Insider & Institutional Ownership
89.5% of AMTEK shares are owned by institutional investors. Comparatively, 73.4% of Rockwell Automation shares are owned by institutional investors. 2.1% of AMTEK shares are owned by insiders. Comparatively, 1.7% of Rockwell Automation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
AMTEK pays an annual dividend of $0.36 per share and has a dividend yield of 0.6%. Rockwell Automation pays an annual dividend of $3.04 per share and has a dividend yield of 1.9%. AMTEK pays out 15.8% of its earnings in the form of a dividend. Rockwell Automation pays out 49.0% 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. AMTEK has increased its dividend for 7 consecutive years.
Risk and Volatility
AMTEK has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, Rockwell Automation has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
AMTEK beats Rockwell Automation on 11 of the 17 factors compared between the two stocks.
AMTEK Company Profile
AMETEK, Inc. is a manufacturer of electronic instruments and electromechanical devices with operations in North America, Europe, Asia and South America. The Company operates through two segments: Electronic Instruments (EIG) and Electromechanical (EMG). EIG designs and manufactures instruments for the process, power and industrial and aerospace markets. EIG provides process and analytical instruments for the oil, gas, petrochemical, pharmaceutical, semiconductor and automation markets. It makes monitoring and metering devices, industrial battery chargers and uninterruptible power supplies, programmable power equipment, electrical test equipment and gas turbine sensors. EMG is a differentiated supplier of precision motion control solutions, thermal management systems, specialty metals and electrical interconnects. Its end markets include medical, automation, petrochemical and other industrial markets. It operates a network of aviation maintenance, repair and overhaul (MRO) facilities.
Rockwell Automation Company Profile
Rockwell Automation, Inc. (Rockwell Automation) is a provider of industrial automation power, control and information solutions for manufacturers. The Company operates through two segments: Architecture & Software and Control Products & Solutions. The Architecture & Software segment contains various hardware, software and communication components of the Company’s integrated control and information architecture capable of controlling the customer’s industrial processes and connecting with their manufacturing enterprise. Architecture & Software has a portfolio of products, including Control platforms that perform multiple control disciplines and monitoring of applications, including discrete, batch and continuous process, drives control, motion control and machine safety control. The Control Products & Solutions segment portfolio includes low and medium voltage electro-mechanical and electronic motor starters, signaling devices, termination and protection devices, relays and timers.
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