Enersys (NYSE:ENS – Get Free Report) and Emerson Electric (NYSE:EMR – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.
Earnings and Valuation
This table compares Enersys and Emerson Electric”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enersys | $3.62 billion | 1.03 | $363.73 million | $8.76 | 11.31 |
| Emerson Electric | $17.49 billion | 4.33 | $1.97 billion | $4.65 | 28.91 |
Institutional and Insider Ownership
94.9% of Enersys shares are owned by institutional investors. Comparatively, 74.3% of Emerson Electric shares are owned by institutional investors. 0.9% of Enersys shares are owned by insiders. Comparatively, 0.5% of Emerson Electric shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility & Risk
Enersys has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Emerson Electric has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.
Profitability
This table compares Enersys and Emerson Electric’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enersys | 9.60% | 21.99% | 10.24% |
| Emerson Electric | 14.92% | 14.34% | 7.79% |
Analyst Ratings
This is a breakdown of current recommendations for Enersys and Emerson Electric, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enersys | 0 | 0 | 3 | 0 | 3.00 |
| Emerson Electric | 1 | 5 | 11 | 2 | 2.74 |
Enersys presently has a consensus target price of $118.3333, indicating a potential upside of 19.44%. Emerson Electric has a consensus target price of $142.3889, indicating a potential upside of 5.91%. Given Enersys’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Enersys is more favorable than Emerson Electric.
Dividends
Enersys pays an annual dividend of $0.96 per share and has a dividend yield of 1.0%. Emerson Electric pays an annual dividend of $2.11 per share and has a dividend yield of 1.6%. Enersys pays out 11.0% of its earnings in the form of a dividend. Emerson Electric pays out 45.4% 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. Enersys has raised its dividend for 2 consecutive years and Emerson Electric has raised its dividend for 68 consecutive years. Emerson Electric is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Emerson Electric beats Enersys on 10 of the 18 factors compared between the two stocks.
About Enersys
EnerSys engages in the provision of stored energy solutions for industrial applications worldwide. It operates in four segments: Energy Systems, Motive Power, Specialty, and New Ventures. The Energy Systems segment offers uninterruptible power systems (UPS) applications for computer and computer-controlled systems, as well as telecommunications systems; switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage, and energy pipelines; integrated power solutions and services to broadband, telecom, data center, and renewable and industrial customers; and thermally managed cabinets and enclosures for electronic equipment and batteries. The Motive Power segment provides power solutions for electric industrial forklifts used in manufacturing, warehousing, and other material handling applications, as well as automated guided vehicles, mining equipment, and diesel locomotive starting and other rail equipment. The Specialty offers batteries for starting, lighting, and ignition applications in automotive and over-the-road trucks; and energy solutions for satellites, spacecraft, commercial aircraft, military land vehicles, aircraft, submarines, ships, and other tactical vehicles, as well as medical devices and equipment. The New Venture segment provides energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. The company also offers battery chargers, power equipment, battery accessories, and outdoor cabinet enclosures, as well as related after-market and customer-support services for industrial batteries. It sells its products through a network of distributors, independent representatives, and internal sales forces. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001. EnerSys was founded in 1991 and is headquartered in Reading, Pennsylvania.
About Emerson Electric
Emerson Electric Co., a technology and software company, provides various solutions for customers in industrial, commercial, and consumer markets in the Americas, Asia, the Middle East, Africa, and Europe. It operates in six segments: Final Control, Control Systems & Software, Measurement & Analytical, AspenTech, Discrete Automation, and Safety & Productivity. The Final Control segment provides control, isolation, shutoff, pressure relief, and pressure safety valves, actuators, and regulators for process and hybrid industries. The Measurement & Analytical segment offers intelligent instrumentation measuring the physical properties of liquids or gases, such as pressure, temperature, level, flow, acoustics, corrosion, pH, conductivity, water quality, toxic gases, and flame. The Discrete Automation segment offers solenoid and pneumatic valves, valve position indicators, pneumatic cylinders, air preparation equipment, pressure and temperature switches, electric linear motion solutions, programmable automation control systems, electrical distribution equipment, and materials joining solutions. The Safety & Productivity segment offers tools for professionals and homeowners; pipe-working tools, including pipe wrenches, pipe cutters, pipe threading and roll grooving equipment, battery hydraulic tools; electrical tools; and other professional tools. The Control Systems & Software segment provides distributed control systems, safety instrumented systems, SCADA systems, application software, digital twins, asset performance management, and cybersecurity. The Test & Measurement provides software-connected automated test and measurement systems. The AspenTech segment provides asset optimization software that enables industrial manufacturers to design, operate, and maintain operations for enhancing performance through a combination of decades of modeling, simulation, and optimization capabilities. The company was incorporated in 1890 and is headquartered in Saint Louis, Missouri.
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