Analyzing Rockwell Automation (NYSE:ROK) and GE Vernova (NYSE:GEV)

GE Vernova (NYSE:GEV) and Rockwell Automation (NYSE:ROK) are both large-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.

Earnings & Valuation

This table compares GE Vernova and Rockwell Automation”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GE Vernova	$41.37 billion	6.85	$4.88 billion	$34.94	30.44
Rockwell Automation	$8.97 billion	5.56	$869.00 million	$10.67	42.11

GE Vernova has higher revenue and earnings than Rockwell Automation. GE Vernova is trading at a lower price-to-earnings ratio than Rockwell Automation, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

75.7% of Rockwell Automation shares are held by institutional investors. 0.2% of GE Vernova shares are held by company insiders. Comparatively, 0.8% of Rockwell Automation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GE Vernova	23.03%	42.42%	7.78%
Rockwell Automation	13.39%	39.83%	12.97%

Analyst Recommendations

This is a breakdown of current recommendations for GE Vernova and Rockwell Automation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE Vernova	1	5	22	2	2.83
Rockwell Automation	0	12	9	0	2.43

GE Vernova presently has a consensus price target of $1,133.15, suggesting a potential upside of 6.55%. Rockwell Automation has a consensus price target of $468.67, suggesting a potential upside of 4.30%. Given GE Vernova’s stronger consensus rating and higher probable upside, research analysts plainly believe GE Vernova is more favorable than Rockwell Automation.

Volatility and Risk

GE Vernova has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Rockwell Automation has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Dividends

GE Vernova pays an annual dividend of $2.00 per share and has a dividend yield of 0.2%. Rockwell Automation pays an annual dividend of $5.52 per share and has a dividend yield of 1.2%. GE Vernova pays out 5.7% of its earnings in the form of a dividend. Rockwell Automation pays out 51.7% 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. Rockwell Automation has raised 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.

Summary

GE Vernova beats Rockwell Automation on 11 of the 18 factors compared between the two stocks.

About GE Vernova

GE Vernova LLC, an energy business company, generates electricity. It operates under three segments: Power, Wind, and Electrification. The Power segments generates and sells electricity through hydro, gas, nuclear, and steam power. Wind segment engages in the manufacturing and sale of wind turbine blades; and Electrification segment provides grid solutions, power conversion, solar, and storage solutions. The company was incorporated in 2023 and is based in Cambridge, Massachusetts.

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.