Emerson Electric (NYSE: EMR) and Atkore International Group (NASDAQ:ATKR) are both industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, dividends and analyst recommendations.

Dividends

Emerson Electric pays an annual dividend of $1.92 per share and has a dividend yield of 2.9%. Atkore International Group does not pay a dividend. Emerson Electric pays out 85.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Emerson Electric has raised its dividend for 60 consecutive years.

Profitability

This table compares Emerson Electric and Atkore International Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Emerson Electric 8.89% 22.32% 9.25%
Atkore International Group 6.91% 33.89% 10.27%

Valuation & Earnings

This table compares Emerson Electric and Atkore International Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Emerson Electric $14.76 billion 2.85 $3.18 billion $2.25 29.24
Atkore International Group $1.52 billion 0.84 $213.86 million N/A N/A

Emerson Electric has higher revenue and earnings than Atkore International Group.

Institutional & Insider Ownership

70.0% of Emerson Electric shares are held by institutional investors. 0.8% of Emerson Electric shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Emerson Electric and Atkore International Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Emerson Electric 2 8 4 0 2.14
Atkore International Group 0 0 3 0 3.00

Emerson Electric currently has a consensus target price of $63.64, indicating a potential downside of 3.26%. Atkore International Group has a consensus target price of $22.67, indicating a potential upside of 13.33%. Given Atkore International Group’s stronger consensus rating and higher probable upside, analysts plainly believe Atkore International Group is more favorable than Emerson Electric.

Summary

Emerson Electric beats Atkore International Group on 10 of the 15 factors compared between the two stocks.

Emerson Electric Company Profile

Emerson Electric Co. is a diversified global manufacturing company, which provides solutions to customers by bringing technology and engineering together in the industrial, commercial and consumer markets around the world. The Company operates through four segments based on the nature of the products and services rendered: Process Management, Industrial Automation, Climate Technologies and Commercial & Residential Solutions. The Company’s principal production operations are electronics assembly, metal stamping, forming, casting, machining, welding, plating, heat treating, painting and assembly. In addition, the Company uses specialized production operations, including automatic and semiautomatic testing, automated material handling and storage, ferrous and nonferrous machining, and special furnaces for heat treating and foundry applications. The Company provides measurement, control and diagnostic technologies for automated industrial processes.

Atkore International Group Company Profile

Atkore International Group Inc. is a manufacturer of electrical raceway products. The Company’s products are primarily offered for non-residential construction and renovation markets, and mechanical products and solutions (MP&S) for the construction and industrial markets. The Company operates in two segments: Electrical Raceway and MP&S. Through the electrical raceway segment, it manufactures products that deploy, isolate and protect a structure’s electrical circuitry from the original power source to the final outlet. The Company’s electrical raceway segment products include electrical conduit, armored cable, cable trays, mounting systems and fittings. Through the MP&S segment, it provides products and services that frame, support and secure component parts in a range of structures, equipment and systems in electrical, industrial and construction applications. The Company’s MP&S segment products include metal framing products and in-line galvanized mechanical tube.

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