Rockwell Automation (NYSE:ROK) versus SiTime (NASDAQ:SITM) Critical Survey

Rockwell Automation (NYSE:ROK) and SiTime (NASDAQ:SITM) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Earnings and Valuation

This table compares Rockwell Automation and SiTime”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rockwell Automation	$8.34 billion	6.61	$869.00 million	$9.62	51.54
SiTime	$326.66 million	60.25	-$42.90 million	($1.01)	-738.18

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rockwell Automation	12.36%	37.54%	12.30%
SiTime	-6.38%	0.53%	0.47%

Volatility and Risk

Rockwell Automation has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, SiTime has a beta of 2.94, meaning that its stock price is 194% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Rockwell Automation and SiTime, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rockwell Automation	0	12	10	0	2.45
SiTime	1	0	8	1	2.90

Rockwell Automation currently has a consensus target price of $457.50, indicating a potential downside of 7.72%. SiTime has a consensus target price of $661.88, indicating a potential downside of 11.22%. Given Rockwell Automation’s higher possible upside, equities research analysts plainly believe Rockwell Automation is more favorable than SiTime.

Insider & Institutional Ownership

75.8% of Rockwell Automation shares are owned by institutional investors. Comparatively, 84.3% of SiTime shares are owned by institutional investors. 0.8% of Rockwell Automation shares are owned by insiders. Comparatively, 1.4% of SiTime shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Rockwell Automation beats SiTime on 9 of the 15 factors compared between the two stocks.

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.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.