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

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

Dividends

Spectris pays an annual dividend of $0.29 per share and has a dividend yield of 1.1%. Rockwell Automation pays an annual dividend of $5.52 per share and has a dividend yield of 1.3%. Rockwell Automation pays out 72.1% of its earnings in the form of a dividend. Rockwell Automation has increased 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.

Insider and Institutional Ownership

75.8% of Rockwell Automation shares are owned by institutional investors. 0.8% of Rockwell Automation shares are owned by 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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spectris	0	1	1	0	2.50
Rockwell Automation	0	7	10	2	2.74

Rockwell Automation has a consensus target price of $406.13, indicating a potential downside of 1.08%. Given Rockwell Automation’s stronger consensus rating and higher possible upside, analysts plainly believe Rockwell Automation is more favorable than Spectris.

Profitability

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

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

Volatility & Risk

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spectris	$1.66 billion	3.08	$298.52 million	N/A	N/A
Rockwell Automation	$8.34 billion	5.53	$869.00 million	$7.66	53.60

Rockwell Automation has higher revenue and earnings than Spectris.

Summary

Rockwell Automation beats Spectris on 15 of the 16 factors compared between the two stocks.

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.

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.