Comparing Spectris (OTCMKTS:SEPJY) & Rockwell Automation (NYSE:ROK)

Rockwell Automation (NYSE:ROK) and Spectris (OTCMKTS:SEPJY) are both computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Earnings and Valuation

This table compares Rockwell Automation and Spectris”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	5.60	$869.00 million	$7.66	54.28
Spectris	$1.66 billion	3.08	$298.52 million	N/A	N/A

Rockwell Automation has higher revenue and earnings than Spectris.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rockwell Automation	10.42%	32.69%	10.69%
Spectris	N/A	N/A	N/A

Insider and Institutional Ownership

75.8% of Rockwell Automation shares are held by institutional investors. 0.8% of Rockwell Automation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Rockwell Automation pays an annual dividend of $5.52 per share and has a dividend yield of 1.3%. Spectris pays an annual dividend of $0.29 per share and has a dividend yield of 1.1%. Rockwell Automation pays out 72.1% of its earnings in the form of a dividend. Rockwell Automation has raised its dividend for 15 consecutive years. Rockwell Automation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Rockwell Automation and Spectris, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rockwell Automation	0	8	10	1	2.63
Spectris	0	1	1	0	2.50

Rockwell Automation presently has a consensus price target of $406.69, suggesting a potential downside of 2.18%. Given Rockwell Automation’s stronger consensus rating and higher possible upside, research analysts clearly believe Rockwell Automation is more favorable than Spectris.

Risk and Volatility

Rockwell Automation has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500. Comparatively, Spectris has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Summary

Rockwell Automation beats Spectris on 15 of the 16 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 Spectris

Spectris plc provides precision measurement solutions worldwide. It operates through Spectris Scientific, Spectris Dynamics, and Other segments. The Spectris Scientific segment provides advanced sensors and instruments used to measure, analyze, and characterize materials; and monitor ultra-clean manufacturing environments. Spectris Dynamics segment offers differentiated sensing, data acquisition, analysis modelling, and simulation solutions for product development and enhance product performance. The Other segment operates high-value precision in-line sensing and monitoring businesses. It serves life sciences/pharmaceuticals, technology-led industrials, automotive, electronics and semiconductor, academic research, and other markets, as well as metals, minerals, and mining. The company was formerly known as Fairey Group plc and changed its name to Spectris plc in May 2001. Spectris plc was incorporated in 1986 and is based in London, the United Kingdom.