Regal Rexnord (NYSE:RRX) and Paul Mueller (OTCMKTS:MUEL) Head-To-Head Survey

Regal Rexnord (NYSE:RRX) and Paul Mueller (OTCMKTS:MUEL) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Profitability

This table compares Regal Rexnord and Paul Mueller’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Regal Rexnord	4.78%	9.49%	4.65%
Paul Mueller	10.88%	32.38%	15.33%

Insider & Institutional Ownership

99.7% of Regal Rexnord shares are owned by institutional investors. 0.6% of Regal Rexnord shares are owned by insiders. Comparatively, 4.0% of Paul Mueller shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Regal Rexnord has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Paul Mueller has a beta of 0.16, suggesting that its share price is 84% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Regal Rexnord and Paul Mueller, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Regal Rexnord	0	3	6	0	2.67
Paul Mueller	0	0	0	0	0.00

Regal Rexnord currently has a consensus price target of $232.25, indicating a potential upside of 8.57%. Given Regal Rexnord’s stronger consensus rating and higher probable upside, equities analysts plainly believe Regal Rexnord is more favorable than Paul Mueller.

Earnings and Valuation

This table compares Regal Rexnord and Paul Mueller”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Regal Rexnord	$5.93 billion	2.40	$279.50 million	$4.30	49.75
Paul Mueller	$287.00 million	1.43	$34.68 million	$40.34	11.29

Regal Rexnord has higher revenue and earnings than Paul Mueller. Paul Mueller is trading at a lower price-to-earnings ratio than Regal Rexnord, indicating that it is currently the more affordable of the two stocks.

Dividends

Regal Rexnord pays an annual dividend of $1.40 per share and has a dividend yield of 0.7%. Paul Mueller pays an annual dividend of $1.20 per share and has a dividend yield of 0.3%. Regal Rexnord pays out 32.6% of its earnings in the form of a dividend. Paul Mueller pays out 3.0% 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.

Summary

Regal Rexnord beats Paul Mueller on 10 of the 16 factors compared between the two stocks.

About Regal Rexnord

Regal Rexnord Corporation manufactures and sells industrial powertrain solutions, power transmission components, electric motors and electronic controls, air moving products, and specialty electrical components and systems worldwide. The Industrial Powertrain Solutions segment provides mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes, gear motors, clutches, brakes, special, and industrial powertrain components and solutions for food and beverage, bulk material handling, eCommerce/warehouse distribution, energy, mining, marine, agricultural machinery, turf and garden, and general industrial markets. The Power Efficiency Solutions segment offers AC and DC motors, electronic variable speed controls, and blowers for residential, commercial HVAC, water heaters, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, agriculture, conveying, and general commercial equipment markets. The Automation and Motion Control segment provides conveyor products, conveying automation subsystems, aerospace components, rotary precision motion solutions, high-efficiency miniature motors, motion controls, automation transfer switches, and switchgear for industrial applications and automation systems for material handling, aerospace and defense, factory automation, data centers, medical device, packaging, printing, semiconductor, robotic, industrial power tool, mobile off-highway, food and beverage processing, and other applications. The Industrial Systems segment offers integral motors, alternators, and aftermarket parts and kits for agriculture, marine, mining, oil and gas, food and beverage, data centers, prime and standby power, and general industrial equipment markets. It sells its products directly to original equipment manufacturers, distributors, and end-users. The company was formerly known as Regal Beloit Corporation. The company was founded in 1955 and is based in Milwaukee, Wisconsin.

About Paul Mueller

Paul Mueller Company, together with its subsidiaries, provides manufactured equipment and components in the United States, North America, Asia, the Far East, the Netherlands, EU countries, Europe, and internationally. The company operates through four reportable segments: Dairy Farm Equipment, Industrial Equipment, Field Fabrication, and Transportation. The Dairy Farm Equipment segment offers milk cooling and storage equipment and accessories, refrigeration units, and heat recovery equipment for use on dairy farms to independent dealers for resale, and directly to farmers; and services for farmers, as well as milk coolers for rent to farmers. The Industrial Equipment segment sells food, beverage, chemical, and industrial processing equipment; and biopharmaceutical and pure water equipment, as well as stainless steel, alloy processing, storage tanks, and heat transfer products. The Field Fabrication segment sells large, field-fabricated tanks and vessels, such as stainless steel storage tanks for sanitary and industrial process applications. The Transportation segment offers delivery of products to customers; backhauls of materials and components; and contract carriage for third parties. It serves its products in various industries, including animal health, beverage, brewing, chemical, dairy farm, dairy processing, food, heat transfer, HVAC, industrial construction, oil and gas, personal care, pharmaceutical, pure water, tank fabrication, and wine. The company was founded in 1940 and is headquartered in Springfield, Missouri.