Contrasting Atkore International Group (ATKR) and Rockwell Automation (ROK)

Atkore International Group (NYSE: ATKR) and Rockwell Automation (NYSE:ROK) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Valuation & Earnings

This table compares Atkore International Group and Rockwell Automation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Atkore International Group $1.50 billion 0.88 $84.63 million $1.41 14.78
Rockwell Automation $6.31 billion 3.76 $825.70 million $6.60 28.12

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

Profitability

This table compares Atkore International Group and Rockwell Automation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atkore International Group 5.97% 26.99% 8.34%
Rockwell Automation 5.85% 39.45% 12.68%

Analyst Ratings

This is a breakdown of current ratings and price targets for Atkore International Group and Rockwell Automation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atkore International Group 0 0 3 0 3.00
Rockwell Automation 1 12 1 0 2.00

Atkore International Group presently has a consensus target price of $24.33, suggesting a potential upside of 16.76%. Rockwell Automation has a consensus target price of $184.91, suggesting a potential downside of 0.35%. Given Atkore International Group’s stronger consensus rating and higher possible upside, analysts plainly believe Atkore International Group is more favorable than Rockwell Automation.

Insider and Institutional Ownership

96.6% of Atkore International Group shares are held by institutional investors. Comparatively, 72.4% of Rockwell Automation shares are held by institutional investors. 51.0% of Atkore International Group shares are held by company insiders. Comparatively, 1.3% of Rockwell Automation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Rockwell Automation pays an annual dividend of $3.34 per share and has a dividend yield of 1.8%. Atkore International Group does not pay a dividend. Rockwell Automation pays out 50.6% of its earnings in the form of a dividend. Atkore International Group has raised its dividend for 8 consecutive years.

Risk and Volatility

Atkore International Group has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Rockwell Automation has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Summary

Atkore International Group beats Rockwell Automation on 9 of the 17 factors compared between the two stocks.

Atkore International Group Company Profile

Atkore International Group Inc. is a manufacturer of electrical raceway products. The Company’s products are primarily offered for non-residential construction and renovation markets, and mechanical products and solutions (MP&S) for the construction and industrial markets. The Company operates in two segments: Electrical Raceway and MP&S. Through the electrical raceway segment, it manufactures products that deploy, isolate and protect a structure’s electrical circuitry from the original power source to the final outlet. The Company’s electrical raceway segment products include electrical conduit, armored cable, cable trays, mounting systems and fittings. Through the MP&S segment, it provides products and services that frame, support and secure component parts in a range of structures, equipment and systems in electrical, industrial and construction applications. The Company’s MP&S segment products include metal framing products and in-line galvanized mechanical tube.

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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