Financial Contrast: Energous (NASDAQ:WATT) versus Eaton (NYSE:ETN)

Energous (NASDAQ:WATT) and Eaton (NYSE:ETN) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Analyst Ratings

This is a summary of current ratings and recommmendations for Energous and Eaton, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energous	0	0	0	0	0.00
Eaton	0	9	14	0	2.61

Eaton has a consensus target price of $379.10, suggesting a potential upside of 7.82%. Given Eaton’s stronger consensus rating and higher probable upside, analysts plainly believe Eaton is more favorable than Energous.

Profitability

This table compares Energous and Eaton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energous	-1.40%	-282.11%	-148.62%
Eaton	15.11%	23.91%	11.38%

Valuation and Earnings

This table compares Energous and Eaton”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energous	$770,000.00	15.30	-$18.40 million	($31.83)	-0.25
Eaton	$24.88 billion	5.50	$3.79 billion	$9.94	35.37

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

Risk & Volatility

Energous has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Eaton has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Institutional & Insider Ownership

4.4% of Energous shares are held by institutional investors. Comparatively, 83.0% of Eaton shares are held by institutional investors. 0.1% of Energous shares are held by insiders. Comparatively, 0.3% of Eaton shares are held 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.

Summary

Eaton beats Energous on 13 of the 14 factors compared between the two stocks.

About Energous

Energous Corporation provides wireless charging system solutions in the United States. The company develops WattUp wireless power networks technology that consists of semiconductor chipsets; software controls; hardware designs; and antennas that enables radio frequency-based charging for Internet of Things devices. Its products are used in asset trackers; sensors; retail displays; and security devices; smart home; medical; industrial; and other sensors; electronic shelf labeling; logistics and asset tracking tags and sensors; computer mice and keyboards; remote controls; gaming consoles and controllers; hearing aids; rechargeable batteries; automotive accessories; smart textiles; wearables; and medical devices. The company was formerly known as DvineWave Inc. and changed its name to Energous Corporation in January 2014. Energous Corporation was incorporated in 2012 and is headquartered in San Jose; California.

About Eaton

Eaton Corporation plc operates as a power management company worldwide. The company’s Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems. Its Aerospace segment offers pumps, motors, hydraulic power units, hoses and fittings, and electro-hydraulic pumps; valves, cylinders, electronic controls, electromechanical actuators, sensors, aircraft flap and slat systems, and nose wheel steering systems; hose, thermoplastic tubing products, fittings, adapters, couplings, and sealing and ducting products; air-to-air refueling systems, fuel pumps, fuel inerting products, sensors, and adapters and regulators; oxygen generation system, payload carriages, and thermal management products; and wiring connectors and cables, as well as hydraulic and bag filters, strainers and cartridges, and golf grips for manufacturers of commercial and military aircraft, and related after-market customers, as well as industrial applications. The company’s Vehicle segment offers transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, locking and limited slip differentials, transmission controls, and fuel vapor components for the vehicle industry. Its eMobility segment provides voltage inverters, converters, fuses, circuit protection units, vehicle controls, power distribution systems, fuel tank isolation valves, and commercial vehicle hybrid systems. Eaton Corporation plc was founded in 1911 and is based in Dublin, Ireland.