Lincoln Electric (NASDAQ:LECO) & Symbotic (NASDAQ:SYM) Critical Contrast

Symbotic (NASDAQ:SYM) and Lincoln Electric (NASDAQ:LECO) are both large-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, earnings, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

Symbotic has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500. Comparatively, Lincoln Electric has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Valuation and Earnings

This table compares Symbotic and Lincoln Electric”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Symbotic	$2.65 billion	8.67	-$16.94 million	$0.09	421.64
Lincoln Electric	$4.64 billion	3.35	$520.53 million	$10.43	27.53

Lincoln Electric has higher revenue and earnings than Symbotic. Lincoln Electric is trading at a lower price-to-earnings ratio than Symbotic, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Symbotic and Lincoln Electric, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Symbotic	2	5	7	0	2.36
Lincoln Electric	0	5	6	0	2.55

Symbotic currently has a consensus price target of $65.83, suggesting a potential upside of 73.48%. Lincoln Electric has a consensus price target of $319.11, suggesting a potential upside of 11.13%. Given Symbotic’s higher possible upside, equities research analysts clearly believe Symbotic is more favorable than Lincoln Electric.

Profitability

This table compares Symbotic and Lincoln Electric’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Symbotic	0.48%	1.40%	0.41%
Lincoln Electric	12.40%	40.06%	15.86%

Insider & Institutional Ownership

79.6% of Lincoln Electric shares are owned by institutional investors. 8.2% of Symbotic shares are owned by company insiders. Comparatively, 1.7% of Lincoln Electric shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Lincoln Electric beats Symbotic on 8 of the 14 factors compared between the two stocks.

About Symbotic

Symbotic Inc., an automation technology company, engages in developing technologies to improve operating efficiencies in modern warehouses. The company automates the processing of pallets and cases in large warehouses or distribution centers for retail companies. Its systems enhance operations at the front end of the supply chain. The company was founded in 2006 and is headquartered in Wilmington, Massachusetts.

About Lincoln Electric

Lincoln Electric Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and sells welding, cutting, and brazing products worldwide. The company operates through three segments: Americas Welding, International Welding, and The Harris Products Group. It offers brazing and soldering filler metals, arc welding equipment, plasma and oxyfuel cutting systems, wire feeding systems, fume control equipment, welding accessories, and specialty gas regulators, and education solutions, as well as a portfolio of automated solutions for joining, cutting, material handling, module assembly, and end of line testing, as well as involved in brazing and soldering alloys, and in the retail business in the United States. In addition, the company manufactures copper and aluminum headers, distributor assemblies, and manifolds for the heating, ventilation, and air conditioning sector in the United States and Mexico; provides specialty welding consumables, wear plates and maintenance and repair services for alloy and wear-resistant products used in mining, steel, agricultural, and industrial mill applications; and designs and manufactures robotic assembly and arc welding systems that automate the tacking and welding of steel beams. Further, the company serves general fabrication, oil and gas, power generation, process, automotive and transportation, and construction and infrastructure industries, as well as heavy fabrication, ship building, and maintenance and repair markets. It sells its products directly to users of welding products, as well as through industrial distributors, retailers, and agents. The company was founded in 1895 and is headquartered in Cleveland, Ohio.