Head-To-Head Comparison: GE Vernova (NYSE:GEV) vs. Rockwell Automation (NYSE:ROK)

Rockwell Automation (NYSE:ROK) and GE Vernova (NYSE:GEV) are both large-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rockwell Automation	$8.97 billion	5.56	$869.00 million	$10.67	42.11
GE Vernova	$41.37 billion	6.85	$4.88 billion	$34.94	30.44

GE Vernova has higher revenue and earnings than Rockwell Automation. GE Vernova 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 Rockwell Automation and GE Vernova’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rockwell Automation	13.39%	39.83%	12.97%
GE Vernova	23.03%	42.42%	7.78%

Risk & Volatility

Rockwell Automation has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, GE Vernova has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Insider & Institutional Ownership

75.7% of Rockwell Automation shares are owned by institutional investors. 0.8% of Rockwell Automation shares are owned by insiders. Comparatively, 0.2% of GE Vernova shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company 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 1.2%. GE Vernova pays an annual dividend of $2.00 per share and has a dividend yield of 0.2%. Rockwell Automation pays out 51.7% of its earnings in the form of a dividend. GE Vernova pays out 5.7% 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. 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 breakdown of recent ratings and target prices for Rockwell Automation and GE Vernova, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rockwell Automation	0	12	9	0	2.43
GE Vernova	1	5	22	2	2.83

Rockwell Automation presently has a consensus target price of $468.67, indicating a potential upside of 4.30%. GE Vernova has a consensus target price of $1,133.15, indicating a potential upside of 6.55%. Given GE Vernova’s stronger consensus rating and higher probable upside, analysts plainly believe GE Vernova is more favorable than Rockwell Automation.

Summary

GE Vernova beats Rockwell Automation on 11 of the 18 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 GE Vernova

GE Vernova LLC, an energy business company, generates electricity. It operates under three segments: Power, Wind, and Electrification. The Power segments generates and sells electricity through hydro, gas, nuclear, and steam power. Wind segment engages in the manufacturing and sale of wind turbine blades; and Electrification segment provides grid solutions, power conversion, solar, and storage solutions. The company was incorporated in 2023 and is based in Cambridge, Massachusetts.