Rockwell Automation (NYSE:ROK) and Universal Electronics (NASDAQ:UEIC) Financial Analysis

Rockwell Automation (NYSE:ROK – Get Free Report) and Universal Electronics (NASDAQ:UEIC – Get Free Report) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Institutional and Insider Ownership

75.8% of Rockwell Automation shares are held by institutional investors. Comparatively, 79.3% of Universal Electronics shares are held by institutional investors. 0.8% of Rockwell Automation shares are held by insiders. Comparatively, 10.5% of Universal Electronics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Rockwell Automation and Universal Electronics, as reported by MarketBeat.

Rockwell Automation presently has a consensus target price of $406.67, suggesting a potential upside of 10.02%. Universal Electronics has a consensus target price of $5.75, suggesting a potential upside of 36.90%. Given Universal Electronics’ higher possible upside, analysts clearly believe Universal Electronics is more favorable than Rockwell Automation.

Valuation & Earnings

This table compares Rockwell Automation and Universal Electronics”s gross revenue, earnings per share (EPS) and valuation.

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

Risk and Volatility

Rockwell Automation has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Universal Electronics has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Profitability

This table compares Rockwell Automation and Universal Electronics’ net margins, return on equity and return on assets.

Summary

Rockwell Automation beats Universal Electronics on 12 of the 15 factors compared between the two stocks.

About Rockwell Automation

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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 Universal Electronics

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Universal Electronics Inc. designs, develops, manufactures, ships, and supports control and sensor technology solutions in the United States, the People’s Republic of China, rest of Asia, Europe, Latin America, and internationally. The company offers voice-enabled automatically-programmed universal two-way radio frequency, as well as infrared remote controls to video service providers, original equipment manufacturers (OEMs), retailers, and private label customers; wall-mount and handheld thermostat controllers and connected accessories for smart energy management systems to OEM customers, hotels, hospitality, and system integrators; proprietary and standards-based RF sensors for residential security, safety, and home automation applications; and integrated circuits on which its software and universal device control database is embedded to OEMs, video service providers, and private label customers. It also provides software, firmware and technology solutions that can enable devices such as Smart TVs, hybrid set-top boxes, audio systems, smart speakers, game consoles, and other consumer electronic and smart home devices to wirelessly connect and interoperate within home networks; cloud-services that support its embedded software and hardware solutions; intellectual property that the company licenses to OEMs and video service providers; embedded and cloud-enabled software for firmware update provisioning and digital rights management validation services to consumer electronics brands; and AV accessories, including universal remote controls, television wall mounts and stands, and digital television antennas. In addition, the company QuickSet, a software application that can be embedded in entertainment or smart home platform or can be delivered as a cloud-based service, through QuickSet Cloud, to enable universal device setup, interoperability, and control. Universal Electronics Inc. was incorporated in 1986 and is based in Scottsdale, Arizona.