EMR vs. CTAS, PH, ITW, GWW, FERG, JCI, IR, XYL, ROK, and ABBNY
Should you be buying Emerson Electric stock or one of its competitors? The main competitors of Emerson Electric include Cintas (CTAS), Parker-Hannifin (PH), Illinois Tool Works (ITW), W.W. Grainger (GWW), Ferguson (FERG), Johnson Controls International (JCI), Ingersoll Rand (IR), Xylem (XYL), Rockwell Automation (ROK), and ABB (ABBNY). These companies are all part of the "industrial products" sector.
Cintas (NASDAQ:CTAS) and Emerson Electric (NYSE:EMR) are both large-cap industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, media sentiment, dividends, profitability, valuation, earnings, community ranking, risk and institutional ownership.
Cintas has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Emerson Electric has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.
Emerson Electric has higher revenue and earnings than Cintas. Emerson Electric is trading at a lower price-to-earnings ratio than Cintas, indicating that it is currently the more affordable of the two stocks.
Cintas pays an annual dividend of $5.40 per share and has a dividend yield of 0.8%. Emerson Electric pays an annual dividend of $2.10 per share and has a dividend yield of 1.9%. Cintas pays out 37.3% of its earnings in the form of a dividend. Emerson Electric pays out 10.9% 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. Cintas has raised its dividend for 41 consecutive years and Emerson Electric has raised its dividend for 67 consecutive years. Emerson Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
63.5% of Cintas shares are held by institutional investors. Comparatively, 74.3% of Emerson Electric shares are held by institutional investors. 15.1% of Cintas shares are held by company insiders. Comparatively, 0.3% of Emerson Electric shares are held by company 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.
In the previous week, Emerson Electric had 25 more articles in the media than Cintas. MarketBeat recorded 29 mentions for Emerson Electric and 4 mentions for Cintas. Emerson Electric's average media sentiment score of 1.20 beat Cintas' score of 0.87 indicating that Cintas is being referred to more favorably in the media.
Emerson Electric received 168 more outperform votes than Cintas when rated by MarketBeat users. However, 60.16% of users gave Cintas an outperform vote while only 58.17% of users gave Emerson Electric an outperform vote.
Emerson Electric has a net margin of 69.33% compared to Emerson Electric's net margin of 15.98%. Emerson Electric's return on equity of 37.19% beat Cintas' return on equity.
Cintas currently has a consensus price target of $661.21, indicating a potential downside of 4.25%. Emerson Electric has a consensus price target of $118.07, indicating a potential upside of 4.81%. Given Cintas' stronger consensus rating and higher possible upside, analysts clearly believe Emerson Electric is more favorable than Cintas.
Summary
Emerson Electric beats Cintas on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding EMR and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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