Eastern (NASDAQ:EML) vs. Resideo Technologies (NYSE:REZI) Head to Head Review

Resideo Technologies (NYSE:REZI) and Eastern (NASDAQ:EML) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

This table compares Resideo Technologies and Eastern’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Resideo Technologies	-8.85%	14.96%	4.59%
Eastern	2.96%	7.18%	3.84%

Volatility and Risk

Resideo Technologies has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, Eastern has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Institutional and Insider Ownership

91.7% of Resideo Technologies shares are held by institutional investors. Comparatively, 77.0% of Eastern shares are held by institutional investors. 1.5% of Resideo Technologies shares are held by company insiders. Comparatively, 17.0% of Eastern shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Resideo Technologies and Eastern”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Resideo Technologies	$6.76 billion	0.82	$116.00 million	($4.68)	-7.91
Eastern	$272.75 million	0.40	-$8.53 million	$1.24	14.66

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

Analyst Recommendations

This is a summary of current recommendations for Resideo Technologies and Eastern, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resideo Technologies	1	2	2	0	2.20
Eastern	0	1	0	0	2.00

Resideo Technologies presently has a consensus target price of $34.67, suggesting a potential downside of 6.39%. Given Resideo Technologies’ stronger consensus rating and higher probable upside, research analysts clearly believe Resideo Technologies is more favorable than Eastern.

Summary

Resideo Technologies beats Eastern on 10 of the 14 factors compared between the two stocks.

About Resideo Technologies

Resideo Technologies, Inc. develops, manufactures, and sells comfort, energy management, and safety and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products and Solutions, and ADI Global Distribution. The Products and Solutions segment provides temperature and humidity control, thermal and combustion solutions, water and indoor air quality solutions, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety and fire suppression, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand as well as Resideo, Braukmann, First Alert, and BRK brands. The ADI Global Distribution segment engages in the distribution of security, fire, access control, and video products; and participates in the broader related markets of smart home, power, audio, ProAV, networking, communications, data communications, wire and cable, enterprise connectivity, and structured wiring products. The company sells its products and services through a network of professional contractors, distributors, and original equipment manufacturers, as well as retail and online merchants. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.

About Eastern

The Eastern Company designs, manufactures, and sells engineered solutions to industrial markets in the United States and internationally. The company offers turnkey returnable packaging solutions, which are used in the assembly processes of vehicles, aircraft, and durable goods, as well as in production processes of plastic packaging products, packaged consumer goods, and pharmaceuticals; designs and manufactures blow mold tools and injection blow mold tooling products, and 2-step stretch blow molds and related components for the stretch blow molding industry; and supplies blow molds and change parts to the food, beverage, healthcare, and chemical industries. It also provides rotary latches, compression latches, draw latches, hinges, camlocks, key switches, padlocks, and handles; and development and program management services for custom electromechanical and mechanical systems for original equipment manufacturers (OEMs) and customer applications. In addition, the company designs and manufactures proprietary vision technology for OEMs and aftermarket applications, as well as offers aftermarket components to the heavy- and medium-duty truck, motorhome, and bus markets. The Eastern Company was founded in 1858 and is based in Shelton, Connecticut.