Milacron (NYSE: MCRN) and Rockwell Automation (NYSE:ROK) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.
Risk & Volatility
Milacron has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Rockwell Automation has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.
This table compares Milacron and Rockwell Automation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Milacron||$1.23 billion||1.15||$1.10 million||N/A||N/A|
|Rockwell Automation||$6.31 billion||3.56||$825.70 million||$2.85||61.74|
Rockwell Automation has higher revenue and earnings than Milacron.
This is a breakdown of recent ratings and recommmendations for Milacron and Rockwell Automation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Milacron currently has a consensus target price of $23.50, suggesting a potential upside of 15.54%. Rockwell Automation has a consensus target price of $194.40, suggesting a potential upside of 10.48%. Given Milacron’s stronger consensus rating and higher possible upside, research analysts clearly believe Milacron is more favorable than Rockwell Automation.
This table compares Milacron and Rockwell Automation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
73.2% of Rockwell Automation shares are owned by institutional investors. 3.4% of Milacron shares are owned by company insiders. Comparatively, 1.7% of Rockwell Automation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Rockwell Automation pays an annual dividend of $3.34 per share and has a dividend yield of 1.9%. Milacron does not pay a dividend. Rockwell Automation pays out 117.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Milacron has raised its dividend for 8 consecutive years.
Rockwell Automation beats Milacron on 10 of the 16 factors compared between the two stocks.
Milacron Company Profile
Milacron Holdings Corp. is engaged in the manufacture, distribution, and service of engineered and customized systems used in the plastic technology and processing industry. The Company operates through three segments: Advanced Plastic Processing Technologies (APPT), Melt Delivery and Control Systems (MDCS), and Fluid Technologies. The Company has a product portfolio that includes hot runner systems, injection molding, blow molding and extrusion equipment. It produces process control systems, mold bases and components, and maintenance, repair and operating (MRO) supplies and fluid technology. As of December 31, 2016, the Company’s products were sold in over 100 countries across six continents. Its customers include original equipment manufacturers (OEMs), molders and mold-makers. Its customer base covers a range of end-market applications, including packaging, automotive, medical, construction, consumer goods and electronics.
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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