Siemens vs Rockwell Automation Which Outperforms?

Siemens and Rockwell Automation are two prominent companies in the industrial automation sector, each offering a wide range of products and services to clients worldwide. Both companies have a strong presence in the market and have consistently performed well in terms of revenue and profitability. Investors looking to invest in automation stocks often consider Siemens and Rockwell Automation as viable options due to their solid track record and potential for growth in the industry. In this analysis, we will compare and contrast the stocks of Siemens and Rockwell Automation, examining key factors such as financial performance, market share, and future prospects.

Siemens or Rockwell Automation?

When comparing Siemens and Rockwell Automation, 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 Siemens and Rockwell Automation.

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. Siemens has a dividend yield of 0.13%, while Rockwell Automation has a dividend yield of 1.67%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Siemens reports a 5-year dividend growth of 7.39% year and a payout ratio of 0.00%. On the other hand, Rockwell Automation reports a 5-year dividend growth of 5.62% year and a payout ratio of 59.95%.

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 Siemens P/E ratio at 103.78 and Rockwell Automation's P/E ratio at 36.07. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Siemens P/B ratio is 18.36 while Rockwell Automation's P/B ratio is 9.82.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Siemens has seen a 5-year revenue growth of 0.58%, while Rockwell Automation's is 0.43%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Siemens's ROE at 19.30% and Rockwell Automation's ROE at 27.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹7830.00 for Siemens and $297.50 for Rockwell Automation. Over the past year, Siemens's prices ranged from ₹3809.15 to ₹8129.90, with a yearly change of 113.43%. Rockwell Automation's prices fluctuated between $242.81 and $312.76, with a yearly change of 28.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.