Rockwell Automation vs Siemens Which Is More Lucrative?

Rockwell Automation and Siemens are two major players in the industrial automation sector, both offering a wide range of products and solutions for manufacturing and engineering industries. When comparing their stocks, Rockwell Automation has shown impressive growth in recent years, benefiting from a strong presence in the U.S. market. On the other hand, Siemens, a global powerhouse in engineering and technology, has a more diversified portfolio and a strong international presence. Investors looking to capitalize on the industrial automation sector should carefully consider the strengths and weaknesses of each company before making a decision.

Rockwell Automation or Siemens?

When comparing Rockwell Automation and Siemens, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Rockwell Automation and Siemens.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Rockwell Automation has a dividend yield of 1.8%, while Siemens has a dividend yield of 0.14%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Rockwell Automation reports a 5-year dividend growth of 5.62% year and a payout ratio of 59.30%. On the other hand, Siemens reports a 5-year dividend growth of 23.36% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Rockwell Automation P/E ratio at 33.16 and Siemens's P/E ratio at 102.13. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Rockwell Automation P/B ratio is 9.03 while Siemens's P/B ratio is 18.02.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Rockwell Automation has seen a 5-year revenue growth of 0.43%, while Siemens's is 0.56%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Rockwell Automation's ROE at 27.26% and Siemens's ROE at 18.19%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $272.35 for Rockwell Automation and ₹7034.00 for Siemens. Over the past year, Rockwell Automation's prices ranged from $242.81 to $312.76, with a yearly change of 28.81%. Siemens's prices fluctuated between ₹3398.25 and ₹8129.90, with a yearly change of 139.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.