Regal Rexnord (NYSE:RRX) vs. Broadwind Energy (NASDAQ:BWEN) Head-To-Head Analysis

Regal Rexnord (NYSE:RRX) and Broadwind Energy (NASDAQ:BWEN) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Insider and Institutional Ownership

99.7% of Regal Rexnord shares are owned by institutional investors. Comparatively, 33.3% of Broadwind Energy shares are owned by institutional investors. 0.6% of Regal Rexnord shares are owned by insiders. Comparatively, 6.1% of Broadwind Energy 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, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Broadwind Energy has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500.

Profitability

This table compares Regal Rexnord and Broadwind Energy’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%
Broadwind Energy	3.30%	-2.05%	-1.09%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Regal Rexnord	$5.93 billion	2.39	$279.50 million	$4.30	49.60
Broadwind Energy	$158.05 million	0.60	$5.24 million	$0.22	18.27

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

Analyst Recommendations

This is a breakdown of recent ratings for Regal Rexnord and Broadwind Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Regal Rexnord	0	3	6	0	2.67
Broadwind Energy	0	2	1	0	2.33

Regal Rexnord currently has a consensus target price of $232.25, indicating a potential upside of 8.89%. Broadwind Energy has a consensus target price of $6.00, indicating a potential upside of 49.25%. Given Broadwind Energy’s higher probable upside, analysts plainly believe Broadwind Energy is more favorable than Regal Rexnord.

Summary

Regal Rexnord beats Broadwind Energy on 11 of the 14 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 Broadwind Energy

Broadwind, Inc. manufactures and sells structures, equipment, and components for clean tech and other specialized applications primarily in the United States. It operates through three segments: Heavy Fabrications, Gearing, and Industrial Solutions. The Heavy Fabrications segment provides fabrications to various industrial markets. It offers steel towers and adapters primarily to wind turbine manufacturers. Its Gearing segment provides gearing, gearboxes, and precision machined components to a range of customers in diverse markets, including surface and underground mining, wind energy, steel, material handling, infrastructure, onshore and offshore oil and gas fracking and drilling, marine, and other industrial markets. This segment also offers heat treat services for aftermarket and original equipment manufacturer applications. The Industrial Solutions segment provides supply chain solutions for offering instrumentation and controls, valve assemblies, sensor devices, fuel system components, electrical junction boxes and wiring, energy storage services, and electromechanical devices; light fabrication, inventory management, and kitting and assembly services; packaging solutions; and supply chain solutions, light fabrication, inventory management, and kitting and assembly services for combined cycle natural gas turbine market. It sells its products to the energy, mining, and infrastructure sectors through its direct sales force and independent sales agents. The company was formerly known as Broadwind Energy, Inc. and changed its name to Broadwind, Inc. in May 2020. Broadwind, Inc. is headquartered in Cicero, Illinois.