Regal Rexnord (NYSE:RRX) & IDEX (NYSE:IEX) Financial Comparison

IDEX (NYSE:IEX) and Regal Rexnord (NYSE:RRX) are both large-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings for IDEX and Regal Rexnord, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
IDEX	0	3	6	0	2.67
Regal Rexnord	0	3	7	0	2.70

IDEX currently has a consensus price target of $241.11, indicating a potential upside of 6.12%. Regal Rexnord has a consensus price target of $237.80, indicating a potential upside of 7.78%. Given Regal Rexnord’s stronger consensus rating and higher probable upside, analysts plainly believe Regal Rexnord is more favorable than IDEX.

Valuation and Earnings

This table compares IDEX and Regal Rexnord”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IDEX	$3.46 billion	4.86	$483.20 million	$6.76	33.61
Regal Rexnord	$6.00 billion	2.45	$279.50 million	$4.30	51.31

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

Institutional & Insider Ownership

98.0% of IDEX shares are held by institutional investors. Comparatively, 99.7% of Regal Rexnord shares are held by institutional investors. 0.5% of IDEX shares are held by insiders. Comparatively, 0.6% of Regal Rexnord shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

IDEX pays an annual dividend of $2.92 per share and has a dividend yield of 1.3%. Regal Rexnord pays an annual dividend of $1.40 per share and has a dividend yield of 0.6%. IDEX pays out 43.2% of its earnings in the form of a dividend. Regal Rexnord pays out 32.6% 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. IDEX has increased its dividend for 16 consecutive years. IDEX is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IDEX	14.38%	15.29%	8.89%
Regal Rexnord	4.78%	9.49%	4.65%

Risk & Volatility

IDEX has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Regal Rexnord has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Summary

Regal Rexnord beats IDEX on 9 of the 17 factors compared between the two stocks.

About IDEX

IDEX Corporation, together with its subsidiaries, provides applied solutions worldwide. The company operates through three segments: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST), and Fire & Safety/Diversified Products (FSDP). The FMT segment designs, produces, and distributes positive displacement pumps, valves, small volume provers, flow meters, injectors, and other fluid-handling pump modules and systems, as well as flow monitoring and other services for the food, chemical, general industrial, water and wastewater, agricultural, and energy industries. The HST segment designs, produces, and distributes precision fluidics positive displacement pumps, powder and liquid processing technologies, drying systems, micro-precision components, pneumatic components and sealing solutions, high performance molded and extruded sealing components, custom mechanical and shaft seals, engineered hygienic mixers and valves, biocompatible medical devices and implantables, air compressors and blowers, optical components and coatings, laboratory and commercial equipment, and precision photonic solutions. This segment serves food and beverage, life sciences, analytical instruments, pharmaceutical and biopharmaceutical, industrial, semiconductor, automotive/transportation, medical/dental, energy, cosmetics, marine, chemical, wastewater and water treatment, research and aerospace/defense markets. The FSDP segment designs, produces, and distributes firefighting pumps, valves and controls, rescue tools, lifting bags, and other components and systems for the fire and rescue industry; engineered stainless steel banding and clamping devices for various industrial and commercial applications; and precision equipment for dispensing, metering, and mixing colorants and paints used in retail and commercial businesses. IDEX Corporation was incorporated in 1987 and is headquartered in Northbrook, Illinois.

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.